Historical Schools and Factors
In the interpretation of the currently dominant view of classical economic theory developed by neoclassical economists, the term "factors" did not exist until after the classical period and is not to be found in any of the literature of that time.
Differences are most stark when it comes to deciding which factor is the most important. For example, in the Austrian view—often shared by neoclassical and other "free market" economists—the primary factor of production is the time of the entrepreneur, which, when combined with other factors, determines the amount of output of a particular good or service. However, other authors argue that "entrepreneurship" is nothing but a specific kind of labor or human capital and should not be treated separately. The Marxian school goes further, seeing labor (in general, including entrepreneurship) as the primary factor of production, since it is required to produce capital goods and to utilize the gifts of nature. But this debate is more about basic economic theory (the role of the factors in the economy) than it is about the definition of the factors of production.
Read more about this topic: Factors Of Production
Famous quotes containing the words historical, schools and/or factors:
“What are your historical Facts; still more your biographical? Wilt thou know a Man ... by stringing-together beadrolls of what thou namest Facts?”
—Thomas Carlyle (1795–1881)
“Our good schools today are much better than the best schools of yesterday. When I was your age and a pupil in school, our teachers were our enemies.
Can any thing ... be more painful to a friendly mind, than a necessity of communicating disagreeable intelligence? Indeed it is sometimes difficult to determine, whether the relator or the receiver of evil tidings is most to be pitied.”
—Frances Burney (1752–1840)
“Girls tend to attribute their failures to factors such as lack of ability, while boys tend to attribute failure to specific factors, including teachers’ attitudes. Moreover, girls avoid situations in which failure is likely, whereas boys approach such situations as a challenge, indicating that failure differentially affects self-esteem.”
—Michael Lewis (late–20th-century)