Production is the result of co-operation of four factors of production viz., land, labour, capital and organization. This is evident from the fact that no single commodity can be produced without the help of any one of these four factors of production.
Table of Contents
What are production features?
Production is the result of co-operation of four factors of production viz., land, labour, capital and organization. This is evident from the fact that no single commodity can be produced without the help of any one of these four factors of production.
How technologies influence the social aspects?
Technology affects the way individuals communicate, learn, and think. It helps society and determines how people interact with each other on a daily basis. It’s made learning more interactive and collaborative, this helps people better engage with the material that they are learning and have trouble with.
How technologies influence the economic aspects?
Technology has deeply affected the global economy and its usage has been linked to marketplace transformation, improved living standards and more robust international trade. Technological advances have significantly improved operations and lowered the cost of doing business.
Why Labour is an important factor of production?
Labour is an active factor of production. It is the factor that starts production. Land and Capital alone cannot start production, so they are passive factors. They need the active factor of production, i.e. labour to be productive themselves.
What are the four main factors of production?
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.
What is one of the major measures of economic growth?
The most used measure for national economic growth is the change in Gross Domestic Product (GDP). GDP measures the value added of all goods and services produced in the economy.
Which type of factor of production is a road?
Tools such as hammers, screwdrivers, and wrenches are also capital. Transportation equipment, such as cars and trucks, is capital. Facilities such as roads, bridges, ports, and airports are capital. Buildings, too, are capital; they help us to produce goods and services.
What is the major role of capital as one of the factors of production?
In economics, capital refers to the assets–physical tools, plants, and equipment–that allow for increased work productivity. By increasing productivity through improved capital equipment, more goods can be produced and the standard of living can rise.
What is the main characteristics of the labor factor of production?
Labour is original and indispensable factor of production 2. Labour is an active factor of production 3. Labour is perishable than any other commodity 4. Labour cannot be separated from the labourer and Others.
What are social political and economic factors?
Political factors relate to how the government intervenes in the economy. Specifically, political factors have areas including tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Economic factors include economic growth, exchange rates, inflation rate, and interest rates.