Economics factor of production

1. FACTORS OF
PRODUCTION
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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.

7. 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.)

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

9. 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.

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

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

14. HUMAN
CAPITAL

15. ELEMENTS OF
PHYSICAL CAPITAL
FIXED
CAPITAL
WORKING
CAPITAL

17. Physical capital

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

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