Give the meaning of factors of production with examples.

1.	Give the meaning of factors of production with examples.
Answer» Land: According to Marshall, all natural assets which help in production or in economic activities constitute land. As per this definition, climate, water resources, fertility, mineral resources, etc. all these natural assets help in production and hence constitute land. Characteristics of land: Land is not manmade. It is a gift of nature. The total supply of land is fixed. Land is immobile. Each type of land has different fertility, experiences different climatic conditions, etc. The remuneration of land as a factor of production is called ‘rent’.

Answer»

Land:
According to Marshall, all natural assets which help in production or in economic activities constitute land. As per this definition, climate, water resources, fertility, mineral resources, etc. all these natural assets help in production and hence constitute land.

Characteristics of land:

Land is not manmade. It is a gift of nature.
The total supply of land is fixed.
Land is immobile.
Each type of land has different fertility, experiences different climatic conditions, etc.
The remuneration of land as a factor of production is called ‘rent’.

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Give the meaning of factors of production with examples.

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