The document discusses the factors of production land and labor. It defines land as natural resources and gifts from nature that are used in production. Labor refers to human effort, both physical and mental, that is contributed to the production process. The key characteristics of land are that it is a passive, immobile and limited factor, while labor is an active and mobile factor. Both land and labor play important roles in facilitating economic production and development.

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ECONOMICS – I
Topic: Factors of Production (Land and Labour)
Submitted To:
XYZ
Amity Law School, AUMP
Submitted By:
Komal Singh
B.A.LL.B
Amity Law School, AUMP

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Factors of Production
The productive resources of an economy are known as
the factors of production.
According to Benham: “Anything which helps in the
process of production, is a factor of production”
resources or
inputs method of turning raw
materials or inputs into
finished goods

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Classification of factors of Production
Land
Labour
Capital
Entreprene
urship

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The term 'land' generally refers to the surface of the
earth. But in economics it includes all that, which is
available free of cost from 'nature' as a gift to human
being. Land stands for all nature, living and nonliving
which is used by man in production.
Meaning of land:

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Characteristics of land:
Free Gift of nature
Land has multiple uses
Land is permanent
Land is immovable
Land is the primary factor of production
Land is a passive factor of production
Land is limited in supply
Land differs in location and fertility

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 Agricultural Development
Functions and Importance of Land
 Industrial Development
 Development of the means of Transportation and
Communication
 Importance to man
 Promotion of Science and Technology

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Labour
As a factor of production

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Meaning of Labour:
Labour means any type of physical or mental exertion. In
economic terms, labour is the efforts exerted to produce
any goods or services. It includes all types of human
efforts – physical exertion, mental exercise, use of
intellect, etc. done in exchange for an economic reward.
Thus, “labour consists of all human efforts of body or
mind which are undertaken in the expectation of
reward”

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Classification of labour
Skilled Labour Semi-skilled Labour Unskilled Labour
Have specialized
training and experience
for a particular
profession.
E.g., CA, CS, Lawyer,
doctor, etc.
Have only a part of a
professional training of their
trade but have sufficient
experience in that line.
E.g., Carpenters, Goldsmiths,
weavers, etc.
They are mainly employed for
carrying out such jobs which
do not require any specialized
professional skill.
E.g., Railway coolies, Domestic
servants, Sweepers, etc.
Labour

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Characteristics of labour
Labour is perishable
Labour is an active factor of production
Labour can not be separated from labourer
Labour is mobile
Labour differs in efficiency
Labour is both a means and an end
Demand for labour is derived
Suppose ‘A’ is a
daily wage
worker and gets
Rs 500 each day
and if he does not
work for a
particular day,
his labour for
that day is
wasted and it can
not be restored

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Importance of Labour
It is an active factor of production without whose cooperation land and
capital cannot produce anything.
The natural resources of a country will remain underutilised in the absence
of labour.
Sincere, dedicated, hard working and intelligent labour force helps the
nation to march on the path of economic development.
Labour is the main source of consumption.
According to socialist economists, labour is the only source of wealth. The
entire wealth in a country is created by labour force.

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LAND
 Land is a gift of nature.
 Land is a passive factor of production
 Supply of land is fixed.
Land is immobile
 Land provides raw materials for
production.
 Productivity of land generally reduces
with overuse.
LABOUR
 Labour refers to the human efforts in
the production process.
 Labour is an active factor of
production
 Supply of labour is not fixed.
Labour is mobile
 It provides services to facilitate
production purpose.
 Efficiency of labour increases.
Difference between Land and Labour

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Fundamentally speaking, 'land' is the original source of all material wealth, and it is
of immense rise to mankind. Despite being a passive factor, it is an important factor
of production. An overall economic prosperity of a country is directly related to the
richness of its natural resources.
The term labour refers to only human effort (or activity) which can be
physical, mental or a mixture of the two. It does not include the work
performed by animals or machines or nature. Labour lately is known as human
resource. All companies freed labour in order to carry out production.
Everyone from the manual workers, to the owner of the company falls under
the classification of human resources.
Conclusion

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References
Books:
 ECONOMICS (Part II)- J.P. Goel and Kaushal Goel
 ECONOMICS (Class XI)- D.K. Sethi and U. Andrews
Websites:
 https://www.toppr.com
 https://brainly.in
Images:
 https://kullabs.com/class-12/economics-1/factors-of-production/land-and-labour
 https://www.slideshare.net/mattbentley34/factors-of-production-9234699
 https://depositphotos.com/stock-photos/say-thank-you.html
 https://twitter.com/amitygwalior/status/1242784593633214464

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Any
Query…Pleas
e?

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