what is the main feature of production state 4 requirement for production in 75 words
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4 main factors required for any production activity are land , labour , physical capital and human capital .
1. Land:
In literary sense, land is regarded as soil. However, in economics, land, a factor of production, has a much wider scope. Marshall has defined land as, “the materials and the forces which nature gives freely for man’s aid, in land and water, in air and light and heat.” Land refers to a natural resource that can be utilized to produce income. It is a useful factor of production, but is available in limited quantity.
2. Labor:
Labor constitutes one of the important factors of production. This factor involves human services and efforts for the production of goods or services. Labor is commonly thought of a group of unskilled labor working in factories. However, in economic terms, a work, physical or mental, carried out for monetary purpose is called labor.
A work that is undertaken by an individual for the sake of interest and pleasure, then the individual would not be regarded as labor in economics. According to Marshall, “Any exertion of mind or body undergone partly or wholly with a view to some good other than the pleasure derived directly from the work is called labor.”
Capital:
In general terms, capital refers to the part of an individual’s income that is used for Income creation purposes. Capital is not considered as original factor of production. In economics, the term capital is associated with capital goods, such as plant, raw materials, fuel, and machinery. Among capital goods, raw material and goods under process are temporary because these goods are repurchased after a period of time.
However, plant and machinery are goods that are permanent and are purchased only once. Apart from this, land cannot be regarded as capital because of the dissimilarities between the characteristics of land and capital. For example, land is natural, permanent, immobile, and fixed. On the other hand, capital is manmade, temporary, mobile, and differs from time to time.
Enterprise:
An enterprise is an entity, organization, or undertaking that is created for commercial purposes or business ventures and requires efforts. It is focused on providing goods and services keeping in view various aspects, such as financial, commercial, and industrial. An enterprise is composed of individuals and physical assets with a common goal of generating profits.
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1. Land:
In literary sense, land is regarded as soil. However, in economics, land, a factor of production, has a much wider scope. Marshall has defined land as, “the materials and the forces which nature gives freely for man’s aid, in land and water, in air and light and heat.” Land refers to a natural resource that can be utilized to produce income. It is a useful factor of production, but is available in limited quantity.
2. Labor:
Labor constitutes one of the important factors of production. This factor involves human services and efforts for the production of goods or services. Labor is commonly thought of a group of unskilled labor working in factories. However, in economic terms, a work, physical or mental, carried out for monetary purpose is called labor.
A work that is undertaken by an individual for the sake of interest and pleasure, then the individual would not be regarded as labor in economics. According to Marshall, “Any exertion of mind or body undergone partly or wholly with a view to some good other than the pleasure derived directly from the work is called labor.”
Capital:
In general terms, capital refers to the part of an individual’s income that is used for Income creation purposes. Capital is not considered as original factor of production. In economics, the term capital is associated with capital goods, such as plant, raw materials, fuel, and machinery. Among capital goods, raw material and goods under process are temporary because these goods are repurchased after a period of time.
However, plant and machinery are goods that are permanent and are purchased only once. Apart from this, land cannot be regarded as capital because of the dissimilarities between the characteristics of land and capital. For example, land is natural, permanent, immobile, and fixed. On the other hand, capital is manmade, temporary, mobile, and differs from time to time.
Enterprise:
An enterprise is an entity, organization, or undertaking that is created for commercial purposes or business ventures and requires efforts. It is focused on providing goods and services keeping in view various aspects, such as financial, commercial, and industrial. An enterprise is composed of individuals and physical assets with a common goal of generating profits.
thnx hope it help u ...
themaster2:
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