Question

.Classify agriculture based on aim of production.

Answer 1

Answer:

Meaning of Production:

Since the primary purpose of economic activity is to produce utility for individuals, we count as production during a time period all activity which either creates utility during the period or which increases ability of the society to create utility in the future.

Business firms are important components (units) of the economic system.

They are artificial entities created by individuals for the purpose of organising and facilitating production. The essential characteristics of the business firm is that it purchases factors of production such as land, labour, capital, intermediate goods, and raw material from households and other business firms and transforms those resources into different goods or services which it sells to its customers, other business firms and various units of the government as also to foreign countries.

Definition of Production:

According to Bates and Parkinson:

“Production is the organised activity of transforming resources into finished products in the form of goods and services; the objective of production is to satisfy the demand for such transformed resources”.

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Answer 2

Answer:

The aim of production is to produce the goods and services to generate wealth that we want for ourselves. 1)Human capital;the knowledge and enterprise of human is needed to put together land,labour, and physical produce an output