FACTORS OF PRODUCTION AND SECTORS OF ECOMONY

BY RIYA

FACTORS OF PRODUCTION

•In economies, factors of production are inputs to the production process and the finished products are output.

•There are 3 basic factors of production: Land, Labor and Capital. Some modern economists also include entrepreneur as a factor of production.

LANDIn economies, the land comprise all

naturally occuring resources whose supply is inherently fixed. Land was sometimes defined in classical and neoclassical economics as the “original and indestructible powers of soil”.

Income derived from ownership of control of natural resources is referred to as rent.

LABORIn economics labor is the measure of the

work done by the humans. It is conventionally contrasted with such other factors of productions such as land and capital.

There are theories which have developed a concept called human capital.

CAPITAL

In economics, capital goods or capital assets are already produced durable goods. Capital is an input in the production functions.

Homes and personal autos are not usually defined as capital.

Capital is wealth but wealth is not capital.

ENTREPRENEURSHIP

Entrepreneur is a person who brings the other 3 factors of production together to form a new product or a new business.

He is a person who takes risk for the business.

SECTORS OF ECONOMY

•The economy is classified into several sectors; some which are related to the production process and some which tell how the industries or any other working places are?

•These sectors are:•Primary sector, Secondary sector, Tertiary

sector•Organized sector, Unorganized sector,•Private sector, and public sector

PRIMARY SECTORIn primary sector, the activities are directly

undertaken by using natural resources.There are many ways for using natural

resources for example:AgricultureMiningFishingDairyForestry and etc.

SECONDARY SECTORIn the secondary sector, the activities in

which natural resources are changed into other forms through the ways of manufacturing.

Secondary sector is the step after the primary sector.

For example: we use cocoa bean for making chocolates, we use coal for making fuel, petrol and etc.

It is also called the industrial sector as it is associated with different types of industries.

TERTIARY SECTOR

The tertiary sector is also called the service sector because there are services in this sector for example:

Storage-: the storage means the place where we store the goods when necessary and there are services provided for it.

Transport:- the goods are transported either by trucks or trains, to other places and are sold in wholesale or retail shops.

UNORGANZIED SECTOR

In the unorganized sector, there are small units which are out of control of the government.

The wages are also not regular and the rules and regulations are not followed.

And the employment is not secure for them

ORGANZIED SECTOR

A sector which acts according to government rules with many employees and have a defined pattern of wages is called organized sector.

PUBLIC SECTOR

The public sector refers to the part of the economy where the government provides services to the public.

In this sector, the main aim is to provide the public welfare.

The services include: the public road, public transport and etc.

PRIVATE SECTORThe private sector is

that part of the economy which sometimes referred as the citizen sector in which the industries and etc. are run by individuals or groups, and is not controlled by state.

The main aim is to earn profit for themselves.

http://en.m.wikipedia.org/wiki/Factors_of_production

http://en.m.wikipedia.org/wiki/Land_(economics)

http://en.m.wikipedia.org/wiki/Labor_economics

http://en.m.wikipedia.org/wiki/Capital_(economics)

http://en.m.wikipedia.org/wiki/Unorganised_sector_(India)

http://wiki.answers.com/Q/Defination_of_organised_sector

http://en.m.wikipidea.org/wiki/Entrepreneurship

http://en.m.wikipedia.org/wiki/Public_sectorhttp://en.m.wikipedia.org/wiki/Private_sector

Bibliography