Rather production also includes any service that can satisfy the wants of people. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. These include any … Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Let us see the features of labour as a factor of production. Federal Reserve Bank of St. Louis. Together, these forces are called the factors of production. It includes all types of human efforts – physical exertion, mental exercise, use of intellect, etc. Accessed April 9, 2020. Factors of production are the inputs available to supply goods and services in an economy. The low social class (the poor) are the majority. (a) Land (b) Capital (c) Labour (d) Tools Answer: (c) Labour ... Answer: The main aim of production is to produce goods and services required by the people. 1) Labour is a human factor of production.2) In economics labour is defined as- “Economic activity of man with HEAD and HAND.”3) LABOUR is human factor of any kind, manual or mental,skilled or unskilled, scientific or artistic undertaken with a view of creating or adding utility. 6. "Factors of Production - The Economic Lowdown Podcast Series, Episode 2." Accessed April 9, 2020. Production is not only concerned with the tangible aspect. 7. Land: Land includes all natural physical resources – e.g. There is presence of social classes in the economy. Every theory of economics has to explain, at a basic level, how stuff gets made. Land - an essential factor of production in many economic activities . Hence now you know why the service of transportation is a process of production too. LC Economics www.thebusinessguys.ie© Factors of Produc-on The scarce produc:ve resources of an economy can be placed into one of the four following headings. E.g. Which is the most abundant factor of production in India? fertile farm land, the benefits from a temperate climate or the harnessing of wind power and solar power and other forms of renewable energy . Different theories consider different forces essential to the production of goods and services and assign different levels of importance to these various factors. In economic terms, labour is the efforts exerted to produce any goods or services. The market forces of demand and supply determine prices. "Principles of Economics: 2.1 Factors of Production." Entrepreneur A person who, operating within the context of a market economy, seeks to earn profits by finding new ways to organize factors of production. However, the term production in Economics is more than what meets the eyes. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. This episode of our podcast series, The Economic Lowdown, discusses the factors of production. The high social class (the rich) own factors of production. They are the workers who do not own factors of production. Factors of production - the resources used by a company to produce goods and services . Characteristics of Labour as a Factor of Production Actually, it is labour which in cooperation with land makes production possible. "Gross Domestic Product." 9. Land is a passive factor whereas labour is an active factor of production. Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit. 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