The term inputs is commonly used to define everything that serves human beings for their life and development. It would therefore be all those goods that we can find both in nature and in society.
In economic terms, the meaning of the word inputs is limited to those goods that serve as raw material for the elaboration or production of other goods. The inputs inevitably lose their properties and characteristics to give rise to another type of product or, in which they are transformed. By itself or with a set of inputs.
The inputs are therefore used as raw materials in the production of other goods. But the word inputs is also used in economic terms applied to a matrix. This serves to define the relationship between production and increased demand.
Types of inputs
The inputs can be classified according to their nature into two types. Here you can see some examples of inputs to fully understand what they consist of.
Workforce
It is the work carried out by a person in the transformation or production of a good. Labor as an input can be classified into two subtypes.
- Direct labor. It is the work done by a person.
- Indirect labor. It is the work done by a person through a machine or tool.
Capital
Understood as those resources created by the human being that are incorporated into the production process. This type of input can be classified into three subtypes.
- Raw material. The raw materials are the products in their natural state without having undergone any transformation.
- Industrial matter. They are the semi-processed products that are part of the production process.
- Installation. Place where the productive activity takes place.
- Service. Offered by a third party they serve to satisfy a part of the production process Company.