Which factor of production is the most important and give reasons
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In the long run energy is the master resource. Given enough energy any problem can be solved.
Land, Labor, Entrepreneurs & Capital are the three main factors of production in economics historically.
If you want to produce something you need somewhere to do the producing, and somewhere to get the raw materials, you need someone to do the work, and you need tools to get the job done. Thus land, labor, Entrepreneurs & capital.
Labor is going to see the biggest change in the near future because computers are going to do more and more of the work that humans used to do.
A lot of people think this is a terrible thing but they fail to realize that as the human labor costs of everything goes to near zero, the price will decrease as well.
As all production processes are automated everything will begin to cost the cost of the energy to extract the resources from the ground and combine them to produce goods. Energy will be the main component to any good's cost.
And energy will get cheaper and cheaper as we develop new tech to harvest more of it.
In fact one can think of the production cost of everything today as fundamentally the cost of the energy to produce it, its just that the energy must first flow through many inefficient systems before it gets to the production process of the good.
Anyway, I agree with everything Stacy Tidwell has to say on this topic, and seeing all resources as fundamentally various forms of energy is my unified-resource-theory of economics. Given enough energy (and time) any problem we might have can be solved even if we just have to brute force it.
The ability to capture and store energy will be the best boon to human progress in the long future. It will compound upon the more immediate advances in AI and automation technologies.
MARK BRAINLIEST..
Land, Labor, Entrepreneurs & Capital are the three main factors of production in economics historically.
If you want to produce something you need somewhere to do the producing, and somewhere to get the raw materials, you need someone to do the work, and you need tools to get the job done. Thus land, labor, Entrepreneurs & capital.
Labor is going to see the biggest change in the near future because computers are going to do more and more of the work that humans used to do.
A lot of people think this is a terrible thing but they fail to realize that as the human labor costs of everything goes to near zero, the price will decrease as well.
As all production processes are automated everything will begin to cost the cost of the energy to extract the resources from the ground and combine them to produce goods. Energy will be the main component to any good's cost.
And energy will get cheaper and cheaper as we develop new tech to harvest more of it.
In fact one can think of the production cost of everything today as fundamentally the cost of the energy to produce it, its just that the energy must first flow through many inefficient systems before it gets to the production process of the good.
Anyway, I agree with everything Stacy Tidwell has to say on this topic, and seeing all resources as fundamentally various forms of energy is my unified-resource-theory of economics. Given enough energy (and time) any problem we might have can be solved even if we just have to brute force it.
The ability to capture and store energy will be the best boon to human progress in the long future. It will compound upon the more immediate advances in AI and automation technologies.
MARK BRAINLIEST..
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