What are capitalism and its factors of production

capitalism and its factors of production

For every person who wants to understand business and its amazing features then he must take a look at capitalism and its factors that can affect any capitalistic working in a country.

Although there are three different types of economic systems are working in different countries these systems are socialism, capitalism and the third one is a mixed system that is working on both of them.

A person in a country e can also start his own business because in a capitalist economic state all the resources of a nation are actually owned by the public and show the followers of these types of systems are also called catalysts.

Most of the people in a capitalistic economy work better and without the interference of any of the government but in the case of working a good business the rules and regulations are pre-order by any of the government.

If you take a look around in different countries then we will not taste that Canada Australia and the United States are those countries that are actually working in a capitalistic system and different other semi-government departments.

Some of the semi-government departments are actually Republic ownership of different resources and utilities of public power dams in a country.

Private profits are actually is on the top in these types of capitalistic economies where most of the private Enterprises are in the competition go up in the market.

Pakistan capitalistic types of system are already working because of different private enterprises who are actually working in providing different goods and services to the public and there are several departments like ptcl and other semi-government departments are under the control of these private enterprises.



What are capitalism and its factors of production

Here are some of the factors that are actually discussed in the capitalist system

One of the major important topics of discussing any of the private Enterprises and their working is input or we can also call as factors of production in any e department.

These factors of production or actually e inputs to make and start a business and provide services to different communities. Factors of production are also required to make any of the products and also finished well after different processing and performing business processes.

Here are some of these inputs are:

  1. Capital

Capital is one of the first main input power factors that are a must to start any business. It could be any of the physical resources that can start a business for the production of any of the products.

The owner of the business must have the capital or any physical input like machinery to produce any of the goods and services for the public.

Most of the companies and departments take a loan from banks to use in the company as capital or investment.

  1. Labour

As the developing countries have employed labor in a very less manner because of machinery working in different countries which are actually built on different artificial intelligence to make their work automatically.


Besides this many different countries have an effector called labors are people required to carry on business organization. The company is responsible to give employees their monthly or yearly e salary to carry on work.

  1. Land

For the performing and building of any of the businesses, the land is one of the God-gifted resources. There are many other natural resources which could be considered as land or God gifted resource to start in business.

Oceans trees minerals water land and others are in the shape of resources that are given by God to start a business.

  1. Organization

The organization is also called a power control of all factors in capitalism. All the factors like capital labor and land are actually controlled by any of the enterprises or called as an organization to make a finished good by correctly balancing and controlling all these factors.

For the production of a particular product, the organization is responsible to give business ideas to different factors that get profit in the shape of reward at the end of every business deal.

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