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:
“In public buildings set aside for the care and maintenance of the goods of the middle ages, a staff of civil service art attendants praise all the dead, irrelevant scribblings and scrawlings that, at best, have only historical interest for idiots and layabouts.”
—George Grosz (1893–1959)
“In America the taint of sectarianism lies broad upon the land. Not content with acknowledging the supremacy as the Diety, and with erecting temples in his honor, where all can bow down with reverence, the pride and vanity of human reason enter into and pollute our worship, and the houses that should be of God and for God, alone, where he is to be honored with submissive faith, are too often merely schools of metaphysical and useless distinctions. The nation is sectarian, rather than Christian.”
—James Fenimore Cooper (1789–1851)
“I always knew I wanted to be somebody. I think that’s where it begins. People decide, “I want to be somebody. I want to make a contribution. I want to leave my mark here.” Then different factors contribute to how you will do that.”
—Faith Ringgold (b. 1934)