In this article we will discuss about Factors of Production. After reading this article you will learn about: 1. Classification of Factors of Production 2. Importance of Factors of Production. Classification of Factors of Production: A factor of production may be defined as that good or service which is required for production. A factor of production is indispensable for production [...]
The following points highlight the fourteen main peculiarities of labour as a factor of production. Some of the peculiarities are: 1. Labour is Perishable 2. Labour cannot be Separated from the Labourer 3. Less Mobility of Labour 4. Weak Bargaining Power of Labour 5. Inelastic Supply of Labour 6. Labourer is a Human being and not a Machine 7. A [...]
Meaning of Capital: Fixed Capital, Working Capital and Human Capital! Meaning of Capital: The term capital is used in economics in various senses. In ordinary language and sometimes in economics also capital is used in the sense of money. But when we talk of capital as a factor of production, to confuse capital with money is quite wrong. Of course, [...]