FACTORS OF PRODUCTION

I. Choose the correct answer:-

1. Economics is a social science

2. There are 4 factors of production.

3. Labour cannot be separated from labourer.

4. In general capital means money.

5. In organizer will always make innovations.

6. The reward paid to capital is interest.

7. Investment in education is called human capital.

8. The reward paid to labour as a factor production is wages.

9. In united states more than 80% of labour force is tertiary workers.

10. Agriculture is classified under primary sector.

II. Fill in the blanks:-

1.Production means creation of utility.

2.Utility means wants satisfying power.

3.Land and labour are called original factor.

4. Capital and organization are called Derived factors.

5.Land is a free gift of nature.

6.The concept of division of labour was introduced by Adam Smith.

7.An enquiry into the nature and causes of wealth of nations was written by Adam Smith.

III.Match the following:-

1. Land — bears risk

2. Banking service — rent

3. Organizer — buildings

4. Labour — tertiary sector

5. Physical capital — perishable.

IV. Answer in brief:-

1. State Lionel Robbins definition of economics.

v Lionel Robbins has defined economics as follows economics is the science which studies human behavior as a relationship between ends and scars means which have alternative uses.

2. What are the three sectors of the economy?

Different sectors:

v 1.Primary sector (raw materials)

v 2.Secondary sectors (manufacturing)

v 3.Feriary sector (services)

3. What is meant by Divisions of labour?

Divisions of labour means dividing the process of productions into several component processes and assigning each component in the hands of a labour or a set of labourers who are or specialists in that particular process.

4. What are forms of capital?

1. Physical capital:

Investment on all manmade physical asserts life buildings and machines are called physical capital.

2. Money capital:

Investment made in the form of many or monetary instrument is called money capital.

3. Human capital:

Investment in education, training, healthcare etc., is called human capital.

5. List out the factors of productions and their respective rewards.

Land

Labour

Capital

Organization

Leave a Reply