Glossary and Important Points
- Land: It is a factor of production that is used for cultivation or construction.
- Labour: Labour is another important factor in production. It means human exertion.
- Capital: It is wealth other than land which is used for the production of wealth.
- Production Process: Organizing and utilizing the factors of production for the production of goods and services is known as the production process.
- Production: Production is the creation of value in a commodity.
Example: manufacturing of a car from steel. - Working Capital: These include the factors of production which are used in production. Raw materials and money in hand are called working capitals.
- Fixed Capital: Tools, machines, buildings can be used in production over many years. These factors of production are called fixed capital.
- Factors of Production: The essential elements which cooperate with one another in the process of production.
Try yourself:
What is land in the context of production?
- A.Human exertion
- B.Wealth other than land
- C.Factors used in production over many years
- D.Factor used for cultivation or construction
View Solution
- Following are the major factors of productions:
(i) Land
(ii) Labor
(iii) Capital
(iv) Enterprise
- Human Capital: It is the most important factor of production which put together with land labour and physical capital and produces an output either to use for self-consumption or to sell in a market.
- Multiple Cropping: To grow more than one crop on a piece of land during the year is known as multiple cropping.
- Yield: It is measured as a crop produced on a given piece of land during a single season.
- Non-Farm Activity: It refers to the activities in a village other than farming. This includes activities like manufacturing, transportation, shop-keeping, etc.
- Green Revolution: The large increase in agriculture production after 1976 due to the adoption of the new Agricultural strategy which implied a simultaneous use of better and modern agriculture inputs.
