The Factors Of Production And Their Rewards

2377 Words Feb 2nd, 2015 10 Pages
HOW TO ENHANCE FACTORS OF PRODUCTION TO GROW AN ECONOMY

Vicky Michaella IRADUKUNDA

How to enhance the of production factors to grow an economy?
Factors of Production are an economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit. The factors of production include land, labor, capital and entrepreneurship.
The capital is all of the tools and machinery used to produce a good or service. Land represents all natural resources, such as timber and gold, used in the production of a good. While labor is all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea
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Pricedirects the use of land in its most productive perspective. Rent will be higher if it is generating high yield.
According to Mason Gaffney, Productivity of land can be enhanced by utilizing it at its most. There are two types of land which are utilized in different ways:
1. Urban land
2. Agricultural land
Enhancing the use of urban land
Urban land use comprises two elements; the nature of land use which relates to which activities are taking place where, and the level of spatial accumulation, which indicates their intensity and concentration. Central areas have a high level of spatial accumulation and corresponding land uses, such as retail, while peripheral areas have lower levels of accumulation. Therefore, enhancing the use of urban land is all about increasing the level of spatial accumulation, especially in central areas, by encouraging the opening of new businesses. However, the central planning authority of land has to ensure that there is available land for proper transportation to and from the CBD and land for green spaces.
Enhancing the use of Agricultural land
Agricultural operations that will enhance farm production and protect natural resources include all aspects of farming, especially that of animal population density, and manures. Animal excrement has been recognized as an important source of macro and micro nutrients for healthy crop growth, and organic matter which is critical to improving soil fertility. Used as fertilizer, manures can improve
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