Factors of production
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Factors of production

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Factors of production Factors of production Presentation Transcript

  • Presented by:- Abhishek AgrawalKoushal Changoiwala
  • CONTENTS1) What is Production.2) What is Factors of Production.3) Basic Factors of Production. • Land and its Features. • Labour and its Features. • Capital and its Features. • Entreprenuer and its Features.
  • What is Production Production is an outcome of an economic activity. Prof. J.R.Hicks defines Production as "any activity directed towards the satisfaction of other peoples wants through exchange."
  • What is Factors of Production 1) Anything that assist production is termed as factor of production.2) But mere existence is not necessarily a factor of production. 3) It become a factor of production only when it actually assist or contributes to production.
  • 1) LAND2) LABOUR3) CAPITAL4)ENTREPRENUER
  • 1) Land is the original and primary factor of production.2) Without land the production process cannot exceed further.3) In Economics all the natural resources that are available – a) on the surface of the earth b) below the surface of the earth c) above the surface of the earth and which are used in the production process is called LAND.
  • 1) Land is a free gift of nature.2) Land has no cost of production.3) The supply of land perfectly inelastic.4) Land is subject to Law of Diminishing Return.5) Land is immobile.
  • 1) Labour is a human factor of production.2) In economics labour is defined as- “Economic activity of man with HEAD and HAND.”3) LABOUR is human factor of any kind, manual or mental,skilled or unskilled, scientific or artistic undertaken with a view of creating or adding utility.
  • 1) Labour is a human factor.2) Active factor.3) Labour cannot be stored.4) No two labours are identical.
  • 1) Capital is a man-made resource of production used to produce further wealth.2) It refers to the stock of capital assets such as factories,machines, tools & equipments, raw material, transport vehicles etc…3) Therefore capital is defined as “Produced means of production”
  • Features of Capital1) Capital is man-made factor of production.2) Supply of capital is elastic.3) Capital has mobility.4) All capital is wealth but all wealth is not capital.
  • Entreprenuer1) Entreprenuer is a person who brings in land, labour & capital in one place & uses it for the production process.2) He is the person who decides- a) What to produce? b) How to produce? c) Where to produce?3) The person who takes these decisions along with the risk associated with them is known as ‘Entreprenuer’.
  • Features of Entreprenuer1) He must be a good administrator.2) He must possess complete knowledge.3) He must be a person of imagination.4) He must be a man of action.
  • Presented by:-Koushal Changoiwala Abhishek Agrawal