Three Perspectives on a Current Issue from the Three Paradigms Being Research Paper

Three Perspectives on a Current Issue from the Three Paradigms Being Covered in Class - Research Paper Example Rent paid by entrepreneurs basically constitutes the land resource, which is used to produce other economic goods and services. Human resource is an active factor of production, which constitutes human labor as a service provision for the production of goods and services that is paid through wages and salaries. Man-made goods that are used for further production of goods and services are referred to as capital goods and include buildings and machinery that are paid as interests. Land, labor, and capital are exploited for production of goods and services in the economy to constitute the national income. Factors of production that can be shifted are capital and labor while land cannot be shifted, since it is a limited factor of production. Labor organizes capital for production although entrepreneurs must maintain an effective ratio of capital goods and labor with a production firm. The decision-making process needs to put into consideration that excess labor per unit of capital and vi ce versa may lead to losses due to inefficiency. Therefore, labor and Capital must be applied in effective ratios for realization of the highest possible economic value (Sagar 50). Organization of Factors of Production Enterprises should be organized by combining labor, land, and capital effectively through a business plan so as to start and run the business. Organization of factors of production does not only constitute planning and running a business, but also absorbing loss for continued production. Enterprise organization as Production process is complex and essential, since there exists small situations in and outside a country that influence organization, thus the necessity of proper planning and operation of an enterprises. Land, as a factor of production, is controlled by land owners, while capital goods are controlled by capitalist and labor as a human resource with respect to occupation skills and salaries. These factors of production are scattered within the economy and t hus the need for organization of these factors of production. Social Institutions The economic interactions of technology, capital goods and social institutions contribute significantly to economic growth through effective production. Social, political, economic and legal institutions in a country affect the economic growth both positively and negatively. Normally, countries seek to redesign their social, political and legal institutions to alter their impact for the improvement of the economy. Institutions that are known to be beneficial in contribution to economic growth should lead to importation of the institutional structures of another country that has benefited from economic growth. Examples of countries that have imported institutional countries include Dubai, which imported London’s commercial law that helps the government in city regulations. However, in many countries, the complete overhaul of institutional structure may not be possible due to political and social disagreements. Political, legal and social institutions go beyond the aspects of basic institutional entities such as the judiciary and parliament.