Embed Size (px)
Citation preview
Factors of Production
Factors of production are
Definition of Factors of Production
resources for production
Classification of Factors of Production
Factors of Production
NaturalResources
HumanResources
Man-MadeResources
Land Labour and
EntrepreneurshipCapital
Natural Resources:
LAND
LAND
Definition:
Resources provided by nature are
called land.
LAND
Characteristics:
1. A Gift of nature
2. Limited in Supply
3. Land is immovable
LAND
Man-Made Resources:
Capital
Capital
All resources that are made by men
to assist production are capital.
Definition:
Capital
1. Man-made Resources
2. Increase in Productivity
Characteristics:
Capital
Human Resources:
Labour
Labour
Labour refers to human efforts, both
mental and physical that are
involved in the production process.
Definition:
Labour
1. Human Resources
2. Rest and Leisure
3. Improvement in Productivity
Characteristics:
Labour
Definition:
Labour Supply
The supply of labour is measured
by the total working hours of the
workers involved in production.
Labour Supply
Factors affecting Labour Supply:
1. Size of the population
2. The size of working population
3. The number of working hours
Labour Supply
Definition:
Average labour productivity
measures the output per worker
per unit of time.
Labour Productivity
Labour Productivity
Factors affecting Labour Productivity:
1. Education and Training
2. Rewards and Benefits
3. Working environment
4. Health of workers
5. Mechanization
6. Division of labour
7. Management
Labour Productivity
Human Resources:
Entrepreneurship
Entrepreneurship
Entrepreneurship refers to human
efforts which organize all resources,
make decisions and bear risks.
Definition:
Entrepreneurship
Characteristics:
1. Management and
Organization
2. Major Decision-Making
3. Risk Bearing
Entrepreneurship
1. Occupational Mobility
2. Geographical Mobility
Type of Mobility of Labour:
Mobility of Resources
1. Monetary Rewards
2. Non-Monetary Rewards
3. Skills of Workers
4. Restrictions of Trade Unions and
Professional Associations
5. Age of workers
Factors affecting the Occupational Mobility of Labour:
Mobility of Resources
1. Transportation
2. Political Factors
3. Economics Conditions of the Home
Country
4. Economics Conditions of Other Countries
5. Social Factors
Factors affecting the Geographical Mobility of Labour:
Mobility of Resources
End
