Question

What does the process of discovery include in regards to the factors of production? economics

Answer 1

Labor is the human activity capable of being added to development. People working to fix tires, pilot airplanes, teach kids, or enforce laws are all part of the labor of the economy. People who want to work but have not found a job— who are unemployed — are also considered part of the labor that the economy has to offer. An economy will increase the amount of labor available to it in two ways. One is to increase the overall quantity of labor, either by increasing the amount of workers available for work or by increasing the average number of working hours per day. The other is to increase the amount of human resources that the workers possess.

Capital isn't limited to physical objects. The score for a new symphony is vitally important as it will be used for concerts. Computer software used for the development of products and services by companies or government agencies is money. In this way, capital may involve tangible assets and intellectual discoveries. Every resource is capital if it meets two criteria: it must have generated the resource. Further products and services can be generated using the tool.

It is possible to increase the natural resources available to us in three ways. One is exploring new natural resources, such as finding a deposit of titanium-containing rock. The second is the discovery of new resource uses, as happened when new techniques allowed oil to be put to productive use or sand for use in computer chip manufacturing. The third is the exploration of new ways to use them to exploit natural resources. New methods to discover and chart oil reserves have expanded the availability of this essential natural resource worldwide.