Economics factor of production

Economics factor of production

1. FACTORS OF PRODUCTION [email protected]

2. What do you understand by term Production? What are the various factors th at can be used for agriculture ? What are the various factors th at can be used for setting up a new factory ?

3. The purpose of the topic is to introduce some basic concepts relating to production

4. Factors of production Land Labour Capital

5. 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.

6. 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.)

7. CHARACTERISTICS OF LAND Free gift of nature. Limited in supply. Differ in variety. Immobile. Passive factor of production. Alternative uses. Indestructible.

8. 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.

9. 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.

10. Capital is the stock of produced means of production. CAPITAL

11. Man made factor. Mobile and transferable. Depreciates. Passive factor of production . CHARACTERISTICS OF CAPITAL

12. HUMAN CAPITAL Knowledge Life experience Skills and ability Creativity

13. Physical capital

14. TEST YOUR ABILITY What is production? What are the various factor of production?

15. HOME ASSIGNMENT How did the spread of electricity help farmers in agriculture? Discuss.