Pricing of the Factors of Production and the Labor Market | Peter G. Klein

Mises Institute

Factors of Production are economic goods: scarce means used to achieve an individual’s ends. They are land, labor and capital. Each is examined. Incomes are earned by factor owners as production takes place. There is no separated production and distribution. Consumer goods and producer goods are subjectively determined by how they are used. Factor pricing is by the Austrian theory of imputation. To Austrians, all costs are opportunity costs. The fifth in a series of ten lectures, from Fundamentals of Economic Analysis: A Causal-Realist Approach. Recorded at the Mises Institute in Auburn, Alabama, on June 13, 2007.