<Li> Financial capital--This is simply the amount of money the initiator of the business has invested in it . "Financial capital" often refers to his or her net worth tied up in the business (assets minus liabilities) but the phrase often includes money borrowed from others . </Li> <Li> Technological progress--For over a century, economists have known that capital and labor do not account for all of economic growth . This is reflected in total factor productivity and the Solow residual used in economic models called production functions that account for the contributions of capital and labor, yet have some unexplained contributor which is commonly called technological progress . Ayres and Warr (2009) present time series of the efficiency of primary energy (exergy) conversion into useful work for the US, UK, Austria and Japan revealing dramatic improvements in model accuracy . With useful work as a factor of production they are able to reproduce historical rates of economic growth with considerable precision and without recourse to exogenous and unexplained technological progress, thereby overcoming the major flaw of the Solow Theory of economic growth . </Li> <P> Ecological economics is an alternative to neoclassical economics (see: Neoclassical economics). It integrates, amongst other things, the first and second laws of thermodynamics (see: Laws of thermodynamics) to formulate more realistic economic systems that adhere to fundamental physical limitations . In addition to the neoclassical focus on efficient allocation, ecological economics emphasizes sustainability of scale and just distribution . Ecological economics also differ from neoclassical theories in its definitions of factors of production, replacing them with the following: </P> <P> Matter: The material from which products are produced . Matter can be recycled or reused through refining or reforming, but it cannot be created or destroyed, placing an upper limit on the amount of material that can be withdrawn and used . Consequently, the total amount of available matter is fixed, and once all the available matter is used, nothing more can be produced without recycling or reusing matter from prior products . </P>

Who possesses the factors of production in uk