Why and how does the economy produce?
The reason why there is production within the economy is because people want to consume goods and they cannot manage to grow them or make them alone. So they start to exchange with other people what they have made. This exchange by barter is more easy when you use money, but the principle is the same. We seek to satisfy our unending desires with the least exertion–that’s economy. The production process brings together three factors, land, labour and capital. You cannot make goods without using some basic natural resources including a place on the surface of the earth, hence land. Without tools production is slow, inefficient and unsatisfactory in many cases, so the capital in the form of tools, transports, machines, buildings etc are most necessary. And we supply the labour and consumption power for ourselves.