Would any of guys be able to explain this basic microeconomis question.what is the role of productive resources in and industry and what is the relationship between mechanization and productivity?
Homework ?
Mechanization increases production. For example, you have a farmer who has to till his soil using a horse. It takes him a week to till his land. With a tractor he can till his land in less than a day. The other days he can use to work somewhere else (or maybe he can till much more soil in the same amount of time).
Or, in the case of production of shirts, for example. By hand a person may be able to produce (just as an example) 10 shirts per day, and with a sowing machine may be able to produce 50 per day. That is an increase in production.
In terms of basic microeconomics this can be illustrated by the production possibilities frontier. The PPF (or curve) shifts to the right with an increase in wealth and technology. It represents an increase in resources (capital, labor, wages and entrepreneurship).
you can use resources for two reasons.
-
for your consumption. (eg food for eating)
-
for increasing productivity. (using iron to build motor for doing work faster)
the latter is called production resource (somthing like that. i read that in one of the articles in this websites but cant remember which one).
is that whay you were asking?
Goods used for production are capital-goods. Food, as long as its not for luxury, is a capital-good, because it allows you to produce labor.
I think I already now the asnwer to this, but would you say that apples are capital goods used to make an apple pie? And by extention, the apple tree would also be a capital good?
Is the steel used to make cars a capital-good? Yes.
In my opinion, yes. As a farmer, when I plan an olive tree I consider that a capital-good.