Factors of production

There are certain things wish contribute to production. They are therefore, called factors of production. The factors of production are chiefly two:

  1. The personal exertion or effort of human beings.

  2. The object to which or the exertion is applied.

Example:

If a hunter waits to kill animals, he must make an effort to kill then and the animals which he waits to kill must exist.

Similarly, the grass_culter who want to cut grass must devote himself to the purpose, and the grass which he wants to cut must be in existence. These two resuiremeuts are indispensable for production: wiltout either of them no production is possible.

These two resuirements of production are known is economics as.

(i)Labour which refers to the personal exertion of human beings.

(ii)land or free gift of nature, which signifies the objects provided by nature and which men adapt for their use. The external impleneut or appliance which increase the effectiveness of human efforts, and which and which emerged as third fabler of production at as early stage of civilization is known as capital.