Other Causes of Increased Production

We have said a bit about the first three causes of increased production on the list. What about the other two?

If we have only a certain amount of resources to use, and we discover no new methods for using them, and there is no change in the division of labor and specialization in society, then how can production be increased? The answer is that we might improve the use of the resources we have, in either or both of two ways:

Put the resources to work where they are more productive and useful; that is, improve the "allocation of resources;" or
Make increased use of resources that are not now being fully used.

These have been the focus of most of the writing on economics in the twentieth century, and accordingly, they correspond roughly to the two great divisions of twentieth century economics:

microeconomics and
macroeconomics

Kinds of Economics