Definitions [2]
Define production.
Production means creation of 'material goods' only. For example, if a farmer is growing wheat, we will say the farmer is producing wheat. Likewise, if a carpenter is making a table, it will be said that the carpenter is producing table. Adam Smith, 'the Father of Economics', has defined production in this sense. According to him, "Production means production of material goods only."
Define capital.
Capital consists of all those goods, existing at present time which can be used in anyway, so as to satisfy wants during the subsequent years.
Key Points
Key Points: Factors of Production
- Four main factors: Land, Labour, capital, and Entrepreneurship.
- All production needs these factors.
- Each factor works together to create goods/services.
Important Questions [19]
- Use of high yielding variety of seeds of related to productivity of ______.
- Which factor of production is not a hired factor?
- The reward of an entrepreneur is in the nature of ______.
- Which of the following types of capital gets exhausted after its use and gets embodied in the finished product?
- Mention two differences between an entrepreneur and other factors of production.
- What do you mean by 'innovative ability' of an entrepreneur?
- Explain complex division of labour with the help of an example.
- Define capital.
- Explain any three characteristics of capital.
- What do you understand by the term 'Capital formation'?
- Explain any three factors which affect capital formation.
- The Indian labour suffers from low efficiency. Explain your answer with three reasons for low efficiency of Indian labour.
- What do you understand by ‘changing pattern of land use’?
- Explain any three such changes causing destruction to the ecosystem. Mention three causes of destruction of ecosystem.
- Identify the factors of production of the following case and differentiate between them. An active and passive factor of production.
- What do you mean by horizontal division of labour?
- Production of cotton textile products is an example of ______.
- Explain any three disadvantages of division of labour. Explain four Disadvantages of division of labour. Explain any three demerits of division of labour.
- Identify the factors of production of the following case and differentiate between them. Single-use and multiple use machinery.
Concepts [13]
- Factors of Production
- Characteristics of Labour
- Labour: an Important Factor of Production
- Entrepreneur - Special Type of Labour
- Labour and Economic Activities
- Division (Specialisation) of Labour
- Types of Division of Labour
- Advantages of Division of Labour
- Disadvantages of Division of Labour
- Necessary Conditions for the Division of Labour
- Efficiency of Labour
- Reasons for Low Efficiency of Labour in India
- Suggestions for Improving the Efficiency of Indian Workers
