Social Sciences, asked by MagicianOm4976, 1 year ago

what is the scarce factor of production in palampur?

Answers

Answered by abhishek5976
4
Every production is organised by combining land, labour, physical capital and human capital, which are known as Factors of Production.

There are 4 factors/requirements for the production of goods and services.

1. Land and Raw Materials: - They are a gift of nature and it is essential for any sort of production
2. Labour:-

Labour refers to the people who work for the production of goods and services.

There are 3 types of Labour - Skilled / Semi-Skilled  and Unskilled

Some production activities require highly educated workers to perform the necessary tasks, whereas some other require workers who can do work manually.

3. Capital/Physical Capital : -

Capital refers to the investments made to produce goods and services.

There are 2 types of Capital namely Fixed Capital & Working Capital.

Fixed Capital: The part of physical capital which can be used in process of production over many years and cannot be altered in short periods. Tools, Machinery, Building etc.

Working Capital: The part of physical capital which can be used in production to make payements and buy other necessary item in short periods.  Raw Materials, Money in Hand

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