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FACTOR OF PRODUCTION
Causes of Localisation Nearness to Ra= Materials. To have raw materials near at hand is a great advantage. Transport costs will be considerably reduced. Production will be more economical. It is not surprising that most of the industries have been started in the...
FACTOR OF PRODUCTION
Division of Labour is Limited by the Extent of the Market This is so obvious. If, for instance, a shoemaker is able to dispose of one pair of shoes in six months, it will look foolish for him to employ half a dozen persons on the making of soles, half a dozen on the...
FACTOR OF PRODUCTION
Advantages Several advantage are claimed for the system of division of labor. Adam Smith’s contribution to this pan of the economics they i till regarded as classic. Division of labor ha ed beneficial in the following ways’ Increase in Proud takes the...
FACTOR OF PRODUCTION
Peculiarities of Labour Labor is manifestly different from the other factors of production. It is a living thing. and that makes all the difference. Labor is not only a means of production but ‘also an end of production. There are certain characteristics which...
FACTOR OF PRODUCTION
LABOUR In the ordinary speech, the term labour means a mass of unskilled labour. But in Economics it is used in a wider sense. Any work. whether manual or mental. which is undertaken for a monetary consideration. is called labour in Economics. Any work done for the...
FACTOR OF PRODUCTION
LAND Economics. It does not mean soil as in the ordinary speech, but it is used in a much wider sense. In the words of Marshall, land means “the materials and the forces which nature gives freely for man’s aid, in land and water, in air and light and...
