Theme 2. Fundamentals of social production
2.1 The bases of social production
Human society is possible only if the society activities for the production of material goods.
Tangible benefit - that is all that can meet daily living material needs, to benefit.
Surrounding human nature cannot provide him with a ready-made all necessary to meet the needs of even the most minimal means. Some material goods (air, water, sunlight) are available for people everywhere and at all times. It's freeand gratuitous benefit.
Production- is a process of human interaction with nature, in which they, converting material nature, adapting it to meet their needs. Needs is the need of anything necessary to sustain an individual, social group or society as a whole. The requirements are the internal impulse of active industrial activity.
Usually needs change in the same direction - toward growth. The needs are endless. This means that they cannot fully satisfy. Matter of nature that people have been processed in the process of labor is called the subject of labor. They are of two types: direct evidence of nature (trees in the forest, the oil extracted from the bowels, etc.) and Processed (a product of the previous work, the raw material).
A man works on the objects of labor, transforms, using hand tools: machinery, equipment, industrial buildings, storage facilities, roads, etc. Instruments of labor - this is what a person with a view to affecting labor. The subject of laborand means of labor, together constitute the means of production, or production resources.
Resources- a combination of various elements of production, which can be used in the creation of goods and services. Productive resources are a necessary condition of productive human activity.
Natural resources - they are a natural base of production of material goods. They include: the land, its minerals, air, water, forests, etc.
Physical resources - a collection of objects in which production takes place, they created a large mass of people that is itself the result of production.
Human resources - it is the population of working age, that is labor. Natural, material and human resources are the basic resources. In one form or another, they form a requisite for any, even the simplest production.
Financial resources - are cash, which the company is committing to the production process. Their sources are investment funds, securities, tax, savings and government loans.
Information resources - is the data necessary for the operation of automated production and management with the help of computer technology. Information is a resource that has an intangible nature. Before getting into the sphere of consumption, material should be processed in production. In this case, we have an economic good. It is available in limited quantities, and the consumer, so it pays for a market price.
If the substance of nature can be consumed without the production, it falls into the category of non-economic benefits that are free or free good, available to anyone.
In the process of direct production resources are transformed into "factors of production" that perform specific functions in the creation of wealth.
Factor of production - a particularly important element or object that has a major impact on the ability and efficiency of production. We can say that it is resources, powered by. Factors of production separately exist. They reveal their meaning only in conjunction, connecting with each other.
Earth- is a natural factor of production, has two meanings:
• involved in the production of natural resources of all kinds;
• own land as the main means of production in agriculture.
This factor of production includes arable land, mineral deposits, forests, water resources, etc., that is, all the gratuitous nature of the goods.
Capital - a collection made of material goods, which are used for the production of future wealth. These include tools, machinery, equipment, facilities, communications, transportation, distribution network, etc.
Work - as a factor of production is the process of implementation of the ability of people to productive activities. In this case, they take the physical and intellectual effort required nervous energy to power other factors.
Entrepreneurial activity (ability)- this is a specific factor of production. It involves the use of initiative, ingenuity and risk in the organization of production.
This means:
• provision of production management;
• a combination of factors by their particular combination;
• implementation of the results of labor.