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FACTORS OF
PRODUCTION
LEENAVAISH1506@GMAIL.COM
The purpose of the topic is to
introduce some basic concepts
relating to production
Factors of
production

Land

Labour

Capital
CONCEPT OF PRODUCTION

Production is defined as the process of
converting the input (raw material) into
output. Production...
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...
CHARACTERISTICS OF LAND









Free gift of nature.
Limited in supply.
Differ in variety.
Immobile.
Passive facto...
LABOUR
Labour is the human factor of
production and include all the physical
and mental activities which are
required in t...
CHARACTERISTICS OF LABOUR
Human factor.
 Active factor.
 Cannot be separated from
labourer.
 Perishable.
 Labourers se...
CAPITAL

Capital is the stock of produced
means of production.
CHARACTERISTICS OF CAPITAL
 Man

made
factor.
 Mobile and
transferable.
 Depreciates.
 Passive factor
of production.
HUMAN
CAPITAL
ELEMENTS OF
PHYSICAL CAPITAL

FIXED
CAPITAL

WORKING
CAPITAL
Physical capital
What is production?
 What are the various factor of
production?


TEST YOUR ABILITY
HOME
ASSIGNMENT
How did the spread
of electricity help
farmers in
agriculture? Discuss.
Economics factor of production
Economics factor of production
Economics factor of production
Economics factor of production
Economics factor of production
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Economics factor of production

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Economics factor of production

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Economics factor of production

  1. 1. FACTORS OF PRODUCTION LEENAVAISH1506@GMAIL.COM
  2. 2. The purpose of the topic is to introduce some basic concepts relating to production
  3. 3. Factors of production Land Labour Capital
  4. 4. 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.
  5. 5. 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.)
  6. 6. CHARACTERISTICS OF LAND        Free gift of nature. Limited in supply. Differ in variety. Immobile. Passive factor of production. Alternative uses. Indestructible.
  7. 7. 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.
  8. 8. 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. 
  9. 9. CAPITAL Capital is the stock of produced means of production.
  10. 10. CHARACTERISTICS OF CAPITAL  Man made factor.  Mobile and transferable.  Depreciates.  Passive factor of production.
  11. 11. HUMAN CAPITAL
  12. 12. ELEMENTS OF PHYSICAL CAPITAL FIXED CAPITAL WORKING CAPITAL
  13. 13. Physical capital
  14. 14. What is production?  What are the various factor of production?  TEST YOUR ABILITY
  15. 15. HOME ASSIGNMENT How did the spread of electricity help farmers in agriculture? Discuss.

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