बुधवार, 16 अक्तूबर 2013

Production, Factors affecting the production and Factors of Production

Production, in Economics is one of the important activities whatever human being is received goods as a natural gift can not be consumed as such. It requires some processing and then and then only it is consumed. Through processing we transform some goods and services in to another one for example sugarcane into sugar, Cotton into cloth etc. In economics, sugarcane or cotton are termed as inputs factor or raw material while sugar or cloth are termed as output or finished product. Thus the term can be defined as under.
1.            Production means transformation of inputs (goods and sieves) into output.
2.            Production of wealth or value.
3.            Production means creation (addition) of wealth or value.
It may consist not only goods but also services.
Factors affecting the production: Following factors affect production.
Natural factors:
Like climatic conditions, soil type affect production. Production can be diminished due to natural calamities like flood, drought etc.
Technical progress:
 Can positively influence production. Use of improved variety, fertilizers, insecticides etc. can give us more production.
Political factors:
Also affect production positively or negatively. Decisions pertaining to taxation, investment or fiscal. Policies of Govt. influence production.
Infrastructure facilities:
 Like transport, credit, storage etc. are also equally important to have more production.
Character of people:
Determines productivity. The hard workers and sincere workers always produce more and hence it is very important factor which influences production.
Factors of Production:

For undertaking production following important factors are required

1. Land 2. Labour 3. Capital and 4. Organization or Enterprise


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