Social production

Social production is an international term used to convey the process and product arising from the experience of people in a community collectively determining the conditions of their own habitat (dwelling place and living environment).

Material production is the use of human labour, skills,and productive forces to change the natural resources into commodity.

There are three basic factors of the production process :human labor(labor force), the subject of labor and the means of labor.

Labor force  is a set of physical and intellectual abilities that a person uses at work

The subject of labor may be materials provided directly by nature like timber or coal, or materials that have been modified by labor. In the latter case, the subject of labor (e.g., yarn in a textile mill) are called raw materials.

Means of labor include tools and machinery (the "instruments of production"), as well as buildings and land used for production purposes and infrastructure like roads and communications networks and so forth. 

Factors Of Production

   The resources that go into the creation of goods and services are called the factors of production. The factors of production include natural resources, human resources, capital and entrepreneurship. Each factor of production has a place in economic system, and each has a particular function. People who own or use a factor of production are expecting a «return or reward.» This generates income which, as it is spent, becomes a kind of fuel that drives the economy.

Natural Resources or «Land»

   Natural resources are the things provided by nature that go into the creation of goods and services. They include such things as minerals, wildlife and timber resources. Economists also use the term «land» when they speak of natural resources as a factor of production. The price paid for the use of land is called rent. Rent becomes income to the owner of the land.

                              Human Resources or «Labor»

   Economists call the physical and mental effort that people put into the creation of goods and services labor. The price paid for the use of labor is called wages. Wages represent income to workers, who own their labor.

Capital

   To the economist, physical capital (or «capital» as it is commonly called) is something created by people to produce other goods and services. A factory, tools and machines are capital resources because they can be used to produce other goods and services. The term capital is often used by business people to refer to money they can use to buy factories, machinery and other similar productive resources. Payment for the use of someone else's money, or capital, is called interest.

Entrepreneurship

   Closely associated with labor is the concept of entrepreneurship, the managerial or organizational skills needed by most firms to produce goods and services. The entrepreneur brings together the other three factors of production. When they are successful, entrepreneurs earn profits. When they are not successful, they suffer losses. The reward to entrepreneurs for the risks, innovative ideas and efforts that they have put into the business, they obtain the money that remains after the owners of land, labor and capital have received their payments.