economics factor of production
DESCRIPTION
Economics factor of productionTRANSCRIPT
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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?
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The purpose of the topic is to introduce some basic concepts relating to production
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Factors of production
Land
Labour Capit
al
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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.
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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.)
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CHARACTERISTICS OF LAND
Free gift of nature.
Limited in supply.
Differ in variety.Immobile.Passive factor of
production.Alternative uses.Indestructible.
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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.
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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.
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Capital is the stock of produced means of
production.
CAPITAL
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Man made factor.
Mobile and transferable.
Depreciates.Passive factor of production.
CHARACTERISTICS OF CAPITAL
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TWO ASPECTS OF CAPITAL
HUMAN CAPITAL
PHYSICAL CAPITAL
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HUMAN CAPITAL
Knowledge
Life experience
Skills and ability
Creativity
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ELEMENTS OF PHYSICAL CAPITAL
FIXED CAPITAL
WORKING CAPITAL
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Physical capital
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TEST YOUR ABILITY
What is production?What are the various factor of
production?
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HOME ASSIGNMENT
How did the spread of
electricity help farmers in
agriculture? Discuss.