1) Labour is a human factor of production.2) In economics labour is defined as- “Economic activity of man with HEAD and HAND.”3) LABOUR is human factor of any kind, manual or mental,skilled or unskilled, scientific or artistic undertaken with a view of creating or adding utility. Notice how this service is intangible. Which is the most abundant factor of production in India? Production is not only concerned with the tangible aspect. Accessed April 9, 2020. Entrepreneur A person who, operating within the context of a market economy, seeks to earn profits by finding new ways to organize factors of production. (a) Land (b) Capital (c) Labour (d) Tools Answer: (c) Labour ... Answer: The main aim of production is to produce goods and services required by the people. The market forces of demand and supply determine prices. Different theories consider different forces essential to the production of goods and services and assign different levels of importance to these various factors. Characteristics of Labour as a Factor of Production However, the term production in Economics is more than what meets the eyes. "Principles of Economics: 2.1 Factors of Production." Land is a passive factor whereas labour is an active factor of production. Advantages of a free enterprise economy 1. "Factors of Production - The Economic Lowdown Podcast Series, Episode 2." The low social class (the poor) are the majority. Land - an essential factor of production in many economic activities . Together, these forces are called the factors of production. 1) LAND 2) LABOUR 3) CAPITAL 4) ENTERPRISE In general terms, Factors of Produc:on are the “stuff” used to make “things”. It includes all types of human efforts – physical exertion, mental exercise, use of intellect, etc. Bureau of Economic Analysis. Land and labour are also known as primary factors of production as their supplies are determined more or less outside the economic system itself. Actually, it is labour which in cooperation with land makes production possible. "Gross Domestic Product." They are the workers who do not own factors of production. LC Economics www.thebusinessguys.ie© Factors of Produc-on The scarce produc:ve resources of an economy can be placed into one of the four following headings. Let us see the features of labour as a factor of production. A factor of production that have been produced for use in the production of other goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. In economic terms, labour is the efforts exerted to produce any goods or services. The high social class (the rich) own factors of production. These include any … 7. Accessed April 9, 2020. This episode of our podcast series, The Economic Lowdown, discusses the factors of production. done in exchange for an economic reward. fertile farm land, the benefits from a temperate climate or the harnessing of wind power and solar power and other forms of renewable energy . Land: Land includes all natural physical resources – e.g. 6. Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit. Accessed April 9, 2020. Factors of production - the resources used by a company to produce goods and services . Factors of production are the resources people use to produce goods and services; they are the building blocks of the economy. Every theory of economics has to explain, at a basic level, how stuff gets made. There is presence of social classes in the economy. 9. Federal Reserve Bank of St. Louis. Springer Link. Rather production also includes any service that can satisfy the wants of people. 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