Factors of Production

  1. Who is father of economics?

Adam Smith

  1. Who said that `Economics is science of Wealth`?

Adam Smith

  1. Book published by Adam Smith – “An enquiry into nation and causes of wealth of nation”.
  2. What determines national income?

The level of production of goods and services in the country determines the quantum of national income.

  1. What is utility?

The satisfying power of wants is called as utility.

  1. What are called as factor of productions?

Land, Labour, Capital and Organization.

  1. What is the factor reward given for land?

Rent

  1. Factor of Production Factor of Reward
  • Land Rent
  • Labour Wages
  • Capital Interest
  • Organization Profit
  1. What is labour?

Labour refers to any work undertaken for securing income an income or reward. Such work can be done both physically and mentally. The work done by a cook is physical in nature and a work done by a teacher is mental in nature. The reward given for their work is called as wages.

  1. What are the characteristics of labour?

Labour is perishable in nature, Labour is inseparable, Labor power differs from person to person, Labour is mobile and Individual labour has week bargaining power.

  1. What was the example taken by Adam Smith for Division of Labour?

Making of pin.

  1. What are the forms of capita?

Physical capital, money capital and human capital.

  1. Who are called as entrepreneurs or organizer?

An organizer or entrepreneurs are the one who combines the different factors of production in the right proportion and imitates the process of production and bears the risk of uncertainties involved in it.

  1. What is chain of production?

The movement of goods and services through the primary, secondary and tertiary sectors is referred as chain of production.

  1. Which is India`s important occupation?

Agriculture

  1. Which sector does Ship building occupies?

Secondary Sector

  1. What is the percentage of people in USA working under tertiary sector?

80%

  1. Which sector is called as service industry?

Tertiary Sector

  1. How can we classify human`s business?

It is classified into three sectors such as primary, secondary and tertiary.

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