Factors of production

1. A presentation on
FACTORS OF PRODUCTION
Group F
Padum Chetri
Pallavi Goswami
Arunav Bhardwaj
Kamal Saharia

2. Production

3. Production function

4. Factor of production
 Meaning-
 Basic factors of production
land
labour
capital
entrepreneurship

5. LAND
“The materials and the forces which nature gives free
for man’s aid, in land and water and in air, light and
heat”
-Marshal

6. Characteristics
Free gift of nature Limited supply
Immobile Alternative uses
Site or location
value
Primary
factor of
production

7. Labour
In economics labour is defined as – “ economic activity of men
with HEAD and HAND”.
According to marshall – “ any exertion of mind or body
undergone partly or wholly with a view to some goods
other than the pleasure derived directly from the work is
called labour”.

8. Characteristics of labour
Inseparable
from labourer
Inelastic
supply of
labour
Labour is
perishable
Less mobility
of labour
Difference in
the efficiency
of labour
Increase in wages
may reduce the
supply of labour

9. Capital
Capital is that part of wealth which is used
for production
 “Capital consists of all kinds of wealth,
other than free gifts of nature, which
yield income.” Therefore, every type of
wealth other than land which helps in
further production of income is called
capital.”
 Marshal

10. Characteristics
Man made factor
Passive factor of
production
Capital depreciates
Capital is mobile
Capital is a produced means of production

11. Entrepreneurship
Entrepreneurship is the process in which the
entrepreneur scans the environment, grabs the business
opportunity, allocates various resources and raw
materials that includes land, labour, capital and
undertakes the production process.

12. Systematic activity Risk taking
Characteristic
s
Innovation and creativity Lawful activity

13. THANK YOU