Production, Distribution and Consumption

Why is location important for production, distribution and consumption?

1. Presented By: Momna Azmat .

2. Topic: Production, Distribution and Consumption (Why is location important for production, distribution and consumption)

3. Disclaimer: In preparation of these slides , materials have been taken from different online sources in the shape of books, websites, research papers and presentations etc. However, the author does not have any intention to take any benefit of these in her/his own name. This presentation is prepared only for educational purpose and is not intended to infringe upon the copyrighted material. Sources have been acknowledged where applicable.

4. Production: Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.

5. Distribution: The way in which something is shared out among a group or spread over an area.

6. Consumption: Consumption means using, buying or eating something. If we don't reduce our energy consumption, we will run out of fuel. Conspicuous consumption is buying something to show off. Consumption is related to the verb consume, which means to eat, use, or buy.

7. Importance of Location for Production, Distribution and Consumption Location is a particular place or position. Location is important for production, distribution and consumption. Location plays a crucial role in both rural and urban areas. The land is any natural resource that's needed or used in the production of a good or service. Land can also include any resource that comes from the land such as oil, gas, and other commodities such as copper and silver. Typically, land includes any natural resource that's used as raw materials in the production process.

8. Location Includes; It may include; Surface of the earth like plains, plateaus, mountains etc. Sea, rivers, ponds etc. Air, light, etc. Oil, coal, natural gas. Silver, gold, and other metals and minerals.

9. Examples A village where there is a more land for cultivation obviously people of that area are rich because their production enhance. On the other hand, an area where land is not fertile and limited area for cultivation than definitely they people faced a lot of difficulties such as poverty etc. Conti…….

10. Location matters a lot because mostly people prefer to buy home in that area where there are more resources, shops, hospitals, markets, and schools. An area where there is lot of resources obviously on that area houses or markets are expensive as compared to those areas where there are limited resource. So, it shows that location is very important for economics.

11. Land Ownership Laws The ‘land ownership laws’ prevailing in a country have a significant influence on the productivity of land’. When a full ownership is conferred, the owner takes more interest in its development. For example , A cultivator possessing full ownership rights on land does more hard work and the productivity automatically improves. But, poor farmers work as tenants on the lands of large farmers. Insecurity of tenancy rights may cause eviction of poor tenancy farmers which make them uninterested to improve land productivity.

12. Features of land Land is a free gift of nature Land has no cost of production The supply of land perfectly inelastic Land is immobile

13. Land is immobile Mobility means ability to move. Movement of land from one place to another is impossible. Thus physically land is perfectly immobile. It has certain occupational mobility because it can be used for variety of occupations like agricultural use for construction of houses

14. Functions of Land: Primary Occupation Basis of industries Basis of Power Basis of Employment Basis of Transport Basis of Trade Basis of Economic Growth Basis of life

15. Conclusion: It is concluded that location play a crucial role in economics such as in production, distribution and consumption. Location is important for trade. Location is beneficial for the enhancement of economy of our country. “Location is a specific factor or that it is the specific element in a factor or again that it is the specific aspect of a thing.” (Prof. F. K. Mehta )