Chapter - 7 Factors of Production
Chapter - 7 Factors of Production Introduction Every product we use (clothes, shoes, phone, furniture, etc.) is made through a production process. This process involves using different resources or inputs. These resources are called Factors of Production. 2. Meaning of Factors of Production Factors of Production are the inputs used to produce goods and services. They help in converting raw materials into finished products. 3. Main Factors of Production:- There are four main factors of production: (i) Land:- The word ‘land’ in economics encompasses not only geographical land but also natural resources like soil, forests, water, air, sunlight, minerals, oil, and natural gas. Includes all natural resources (soil, water, forests, minerals). Example: farmland, rivers, minerals. (ii) Labour:- Human beings play a key role in economic activities and production processes as they apply their knowledge, skills, and decision-making abilities to create goods and services. Ref...