economics factor of production
DESCRIPTION
Economics factor of productionTRANSCRIPT
What do you understand by term Production?
What are the various factors
that can be used for agriculture?What are the various factors
that can be used for setting up a new factory?
The purpose of the topic is to introduce some basic concepts relating to production
Factors of production
Land
Labour Capit
al
CONCEPT OF PRODUCTION
Production is defined as the process of converting the input
(raw material) into output. Production may be an activity
that generate income.
LAND
Land is that factor of production which is available to us as a free gift of nature. It not include not only the soil but also other free gift of nature ( like forest, water, natural resources etc.)
CHARACTERISTICS OF LAND
Free gift of nature.
Limited in supply.
Differ in variety.Immobile.Passive factor of
production.Alternative uses.Indestructible.
LABOUR
Labour is the human factor of production and include all the
physical and mental activities which are required in the process of factor
of production.
CHARACTERISTICS OF LABOUR
Human factor.Active factor.Cannot be separated
from labourer.Perishable.Labourers sell his
labour not himself.Difference in
efficiency.Mobile.Weak bargaining
power.More wages less work.
Capital is the stock of produced means of
production.
CAPITAL
Man made factor.
Mobile and transferable.
Depreciates.Passive factor of production.
CHARACTERISTICS OF CAPITAL
TWO ASPECTS OF CAPITAL
HUMAN CAPITAL
PHYSICAL CAPITAL
HUMAN CAPITAL
Knowledge
Life experience
Skills and ability
Creativity
ELEMENTS OF PHYSICAL CAPITAL
FIXED CAPITAL
WORKING CAPITAL
Physical capital
TEST YOUR ABILITY
What is production?What are the various factor of
production?
HOME ASSIGNMENT
How did the spread of
electricity help farmers in
agriculture? Discuss.