Write about any one production activity and explain its factors also ofr 9th class palampur lesson
Answers
Explanation:
The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.
Production
It is a process of combining various inputs to make something for consumptions. Production is an outcome of economic activity. For making or producing something, we need some tangible and intangible materials.
These materials are the various factors of production. Consider a simple example of paper crafting. To make an origami, we need paper, money to buy it, and the most important technique of folding.
Let us understand what we mean by the factors of production and their types.
Factors of Production
Anything that helps in production is the factor of production. These are the various factors by mean any resource is transformed into a more useful commodity or service.
They are the inputs for the process of production. They are the starting point of the production process. Factors of production are the parameters which affect the output of production.
Types of Factors of Production
Factors of production have been categorized into four types.
factors of production
Land
It refers to all natural resources. All natural resources either on the surface of the earth or below the surface of the earth or above the surface of the earth is Land.
One uses the land to produces goods. It is the primary and natural factor of production. All gifts of nature such as rivers, oceans, land, climate, mountains, mines, forests etc. are land.
The payment for land is rent.
Characteristics of Land as a Factor of Production
The land is a free gift of nature.
The land has no cost of production.
It is immobile.
The land is fixed and limited in supply.
Types of Land
Residential
Commercial
Recreation
Cultivation
Extraction
Uninhabitable
Labor
All human effort that assists in production is labour. This effort can be mental or physical. It is a human factor of production. It is the worker who applies their efforts, abilities, and skills to produce.
The payment for labour is the wage.
Characteristic
It is a human factor.
One cannot store labour.
No two types of labour are the same.
Types of Labor
Unskilled
Semi-skilled
Skilled
Professional
Capital
Capital refers to all manmade resources used in the production process. It is a produced factor of production. It includes factories, machinery, tools, equipment, raw materials, wealth etc.
The payment for capital is interest.
Characteristics
Capital is a manmade factor of production.
It is mobile.
It is a passive factor of production.