I am reading mankiw's intermediate economics text. what i find is that when he writes a production function for how much will be produced in an economy. he says it is dependent upon quantity of inputs (capital, labour) and technology (defined by the production function itself).
Now my question why he ignored raw materials, energy and land? When you need to produce more cars. you will need more energy, more raw material (steel or whatever) and more land (after a certain threshold).
Secondly, the idea of technology is kind of tricky. Like usually technology does not hang in thin air. It is usually embedded in the capital itself. pentium 3 as compared to pentium 4 computer, for instance. Also labour. every hour of labour is not equal. Highly skilled labor may be more productive.
So, how do you actually go about disentangling what is the contribution of "technology", capital and labour to output, in a real world data. Like some growth accounting exercises do. It may be very hard to say what is capital and what is technology. every dollar of investment in capital is not same, and it is not independent of technology.