Productive resources essay sample

 

The economy and all its participants strongly depend on the productive resources widely used to produce goods or services. Availability of productive resources is a potent drive for economies around the world – prices on oil can change the value of currency, and plenty of labor in the industry can produce more goods for the same time. The amount of productive resources involved into the manufacturing of goods usually reflects in their price. The more natural and human resources manufacturers involve into the production process, the higher is the value of the product.

Among productive resources economists distinguish natural, human, and capital resources. Natural resources are water, land, timber, animals and plants, fossil fuels, and a range of other raw materials supplied by nature. Some of them like fossil fuels are non-renewable while the others such as ecosystems can restore themselves very slowly.

Human resources are the labor that manages industrial processes and produces goods. Labor is an essential component of the industries irrespective of their technological equipment. All producers employ more or fewer workers to control industrial processes. Human resources are also consumers. They depend on goods manufactured themselves and workers of other industries.

Capital resources encompass all the technical equipment involved into the production of goods. Capital resources are purchased by the manufacturer and operated by the labor.

All three types of productive resources ensure smooth manufacturing process. It is impossible for producers to operate without raw materials, labor and equipment which means that every type shall be equally valued.