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.
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.)
CHARACTERISTICS OF LAND
Free gift of nature.
Limited in supply.
Differ in variety.
Passive factor of
Labour is the human factor of
production and include all the physical
and mental activities which are
required in the process of factor of
CHARACTERISTICS OF LABOUR
Cannot be separated from
Labourers sell his labour
Difference in efficiency.
Weak bargaining power.
More wages less work.
Capital is the stock of produced
means of production.
CHARACTERISTICS OF CAPITAL