Proffectional studies

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FACTORS OF PRODUCTION POWER POINT

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Proffectional studies

  1. 1. FACTORS OF PRODUCTION PROFFECTIONAL STUDIES 3A
  2. 2. Concept of production  Production is defined as the process of converting the input (raw material ) into the out put.  Production can be an activity that generate income.
  3. 3. The Four Factors of production are  NATURAL RESOURCES  LABOR  CAPITAL  ENTREPRENEURSHIP
  4. 4. NATURAL RESOURCES  What is the land and examples of land? o Gifts of nature” that make production possible, including:  Land  Water  Animals  Minerals
  5. 5. Natural resources continued
  6. 6. Natural resources continued  There are six types of natural resources that primary industries supply us with are  agriculture  fishing and trapping  mining  water  fuel and energy  logging and forestry
  7. 7. Natural resources continued  Characteristics of natural resources  A gift of nature  Limited in supply  Land is immovable  The supply of land involves no opportunity cost
  8. 8. labour o The term “labour” refers to the nation’s workforce. This can include anyone who works to produce good and services.
  9. 9. Labour continued  Labour includes all of the physical and mental (cognitive) work needed to produce goods and services. Labour is expensive so most businesses seek ways to save on labour costs.  Businesses now automate and consolidate to save on labour costs.  Outsourcing, the hiring of another company to perform tasks for any company, is another cost saving business option.
  10. 10. Labour continued  Features of labour  Labour is the human factor  Active factor  Labour can not be stored  No two labour are identical
  11. 11. Labour continuned  Characteristic of the labour o The quality of labour refers to whether labour is unskilled, semi skilled or skilled o The quantity of labour :the size of country labour force (working population) depends on the country total population, school leaving age and retirement age etc..
  12. 12. capital  What is the capital an examples of capital?  Capital is the money invested in the business. (can be liquid or non-liquid)  Intellectual property, the ideas or the talent of a business’ workforce, is a non-tangible form of capital.  The manufactured goods used to make other goods and services.  Man-made resources used for further production  Examples: machines, raw materials, tools  Features:  Man made  It raises the productivity of other factors
  13. 13. Capital continued  Characteristics of capital o Man made factor o Mobile and transferable o Depreciates o Passive factor of production  Two aspects of capital o Human capital o Physical capital
  14. 14. Capital continued  Human capital o Knowledge o Life experience o Creativity o Skills and ability  Element of physical capital o Fixed capital o Working capital
  15. 15. Capital continued  Examples of the fixed capital o Plant and machinery o Factory land and its buildings o Computing and communication infrastructure
  16. 16. Capital continued  Examples of the physical capital  Raw materials
  17. 17. Capital continued
  18. 18. ENTREPRENEURSHIP  Entrepreneurs are individuals who start new businesses, introduce new products, and improve a process.  Is a person who brings in land, labour and capital in one place and uses its for the production process.  He or she is the person who decide  What to produce  How to produce  Where to produce
  19. 19. Entrepreneurship continued  The person who takes the decisions along with the risk associated with them is known as entrepreneur.  Fictures of entrepreneurship o He must be a good administrator o He must possesses the complete knowledge o He must be the person of imagination o He must be the man of action.
  20. 20. entrepreneurship
  21. 21. Factors returns  Natural resources -rent  Capital –interest  Labour –wage  Entrepreneurship -profit
  22. 22. references  http://www.slideshare.net/vinodsolanki44/factors-of-production-30079919  http://www.slideshare.net/leena1506/economics-factor-of-production  http://www.slideshare.net/RonkeSonuga/productionii  http://www.slideshare.net/ZubairNoorMemon/factors-of-production-economics
  23. 23. Hope you all enjoy today economics…

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