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Factor of Production: Presented By: Ayesha Waseem Class:O1 A

The document discusses the four main factors of production: land, labor, capital, and enterprise. Land refers to natural resources available for production. Labor includes both physical and mental work. Capital consists of man-made goods like machinery, buildings, and raw materials used to produce other goods and services. Enterprise involves planning, starting, and running a business by bringing together factors of production.

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Syeda Malika Anjum
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38 views7 pages

Factor of Production: Presented By: Ayesha Waseem Class:O1 A

The document discusses the four main factors of production: land, labor, capital, and enterprise. Land refers to natural resources available for production. Labor includes both physical and mental work. Capital consists of man-made goods like machinery, buildings, and raw materials used to produce other goods and services. Enterprise involves planning, starting, and running a business by bringing together factors of production.

Uploaded by

Syeda Malika Anjum
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Factor Of Production

Presented by: Ayesha Waseem


Class:O1 A
What Is Factor Of Production?

Factors of production is an economic term


that describes the inputs used in the
production of goods or services.
 These include any resource needed for
the creation of a good or service. The
factors of production include land, labor,
capital, and enterprise.
Land
The term ‘land’ generally refers to the
surface of the earth.
But in economics, it includes all that,
which is available free of cost from
‘nature’ as a gift to human beings.
 Land stands for all nature, living and
non-living which are used by man in
production.
Labour
In simple meaning by ‘Labour’ we mean
the work done by hard manual labour
mostly work done by unskilled worker.
In other-words we can say that Labour
includes both physical and mental work.
In this way, workers working in factories,
services of doctors, officers and teachers
are all included in labour.
Capital
 Capitalis a man-made goods used to
produce other goods and services.

For Example:
Machinery, tools and equipment of all
kinds, buildings, railways and all means
of transport , raw materials, etc., are
included in capital.
Enterprise
Enterprise means to plan a business, to start
it and run it.
It means to bring the factors of production
together, assign each its proper task, and pay
them remuneration when the work is done.
The man who undertakes all this work is
called an entrepreneur. Organizing and risk-
taking are the two main functions of the
entrepreneur.

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