Location is important for production, distribution, and consumption. For production, location determines access to natural resources and land fertility, which impacts productivity and livelihoods. Villages with more fertile land and resources have richer populations due to enhanced production. For distribution, location influences transportation and access to markets, shops, and infrastructure. Areas with more resources have higher property prices. For consumption, people prefer to live near resources, schools, hospitals, and shops. Overall, location plays a crucial role in economics and development.

2. Presented By: Momna Azmat.

3. Topic:
Production, Distribution and
Consumption
(Why is location important for production, distribution and
consumption)

4. Disclaimer:
In preparation of these slides, materials have been taken from
different online sources in the shape of books, websites, research
papers and presentations etc. However, the author does not have any
intention to take any benefit of these in her/his own name. This
presentation is prepared only for educational purpose and is not
intended to infringe upon the copyrighted material. Sources have
been acknowledged where applicable.

5. Production:
Production is a process of combining
various material inputs and immaterial
inputs in order to make something for
consumption. It is the act of creating an
output, a good or service which has value
and contributes to the utility of individuals.

6. Distribution:
The way in which something is shared
out among a group or spread over an
area.

7. Consumption:
Consumption means using, buying or eating
something. If we don't reduce our
energy consumption, we will run out of fuel.
Conspicuous consumption is buying something to
show off. Consumption is related to the
verb consume, which means to eat, use, or buy.

8. Importance of Location for Production, Distribution
and Consumption
Location is a particular place or position. Location is
important for production, distribution and consumption.
Location plays a crucial role in both rural and urban
areas. The land is any natural resource that's needed or
used in the production of a good or service. Land can also
include any resource that comes from the land such as oil,
gas, and other commodities such as copper and silver.
Typically, land includes any natural resource that's used as
raw materials in the production process.

9. Location Includes;
It may include;
•Surface of the earth like plains,
plateaus, mountains etc.
•Sea, rivers, ponds etc.
•Air, light, etc.
•Oil, coal, natural gas.
•Silver, gold, and other metals and
minerals.

10. Examples
A village where there is a more land for
cultivation obviously people of that area are rich
because their production enhance. On the other
hand, an area where land is not fertile and
limited area for cultivation than definitely they
people faced a lot of difficulties such as poverty
etc.
Conti…….

11. Location matters a lot because mostly people prefer to
buy home in that area where there are more resources,
shops, hospitals, markets, and schools.
An area where there is lot of resources obviously on
that area houses or markets are expensive as
compared to those areas where there are limited
resource. So, it shows that location is very important
for economics.

12. Land Ownership Laws
The ‘land ownership laws’prevailing in a country have a significant
influence on the productivity of land’.
When a full ownership is conferred, the owner takes more interest in its
development.
For example,
A cultivator possessing full ownership rights on land does more hard
work and the productivity automatically improves. But, poor farmers
work as tenants on the lands of large farmers. Insecurity of tenancy
rights may cause eviction of poor tenancy farmers which make them
uninterested to improve land productivity.

13. Features of land
oLand is a free gift of nature
oLand has no cost of production
oThe supply of land perfectly inelastic
oLand is immobile

14. Land is immobile
Mobility means ability to move. Movement of land from one
place to another is impossible. Thus physically land is perfectly
immobile. It has certain occupational mobility because it can be
used for variety of occupations like agricultural use for
construction of houses

15. Functions of Land:
i. Primary Occupation
ii. Basis of industries
iii. Basis of Power
iv. Basis of Employment
v. Basis of Transport
vi. Basis of Trade
vii. Basis of Economic Growth
viii. Basis of life

16. Conclusion:
It is concluded that location play a crucial role in
economics such as in production, distribution and
consumption. Location is important for trade. Location
is beneficial for the enhancement of economy of our
country.
“Location is a specific factor or that it is the specific
element in a factor or again that it is the specific
aspect of a thing.”
(Prof. F. K. Mehta)