It may be noted that rent is usually paid for something more than the use of land or another natural resource, but includes also an element of payment for another factor which is involved in making the resource available in a usable form.

MyMemory is the world's largest Translation Memory. So, the entrepreneur is the person who takes the charge of supervising the organisation of production and of framing the necessary policy regarding business. Since land is already in existence, no costs are to be incurred in creating it. (a) The spatial or geographical mobility of labour, which relates to the rate at which workers move between geographical areas and regions in response to differences in wages and job availability (e.g., a worker from West Bengal moving to Mumbai) and. Good luck.
Capital has, therefore, been defined as ‘produced means of production.’ It is a man-made resource. Reference: Anonymous, Last Update: 2020-08-23 Reference: Anonymous, Last Update: 2020-08-21

(1) That the production of anything requires the use of labour as a factor, and. As the Penguin Dictionary of Economics has put it: “Land in economics is taken to mean not simply that part of the earth’s surface not covered by water, but also all the free gifts of nature’s such as minerals, soil fertility, as also the resources of sea. As Stanlake has rightly put it, “any increase in the value of natural resources due to rising populations and rising incomes accrues to the owners of these resources as a windfall gain—it does not arise from any efforts on their part”. Usage Frequency: 1 The distinctive feature of the factor of production, called labour, is that it provides a human service.

The efficient operation of an enterprise, irrespective of its nature and form, depends on certain human relations and human qualities such as initiative, leadership orga­nisational ability and controlling capacity. An example of this is the labour which assists in the process of bringing minerals to the surface. If people choose not to buy some consumer goods, with some part of their current income, they refrain from buying (utilising) the services of the factors required to make those goods. For example, the miner or the air- hostess runs the risk of personal injury and life and most forms of labour run the risk of unemployment. This calls for a sacrifice of current consumption.
These factors might, therefore, remain idle. People use capital for another important reason to produce goods with less effort and lower costs than would be the case if labour were not assisted by capital.

These industries are engaged in such activities as extracting the gifts of Nature from the earth’s surface, from beneath the earth’s surface and from the oceans. If income is low, savings will also be low.

The end result is that changes in the total area are really insignificant. People use capital goods like machines, equipment, etc.

If the rate of interest is high people will be eager to save more by curtailing their current consumption. Sixthly, labour services cannot be stored: Labour cannot be ‘saved’ or stored for future use (although rest may enhance performance to some extent). On the other hand, all jobs which do aim at satisfying wants are part of production.

It may be noted that savings make possible capital accumulation. In other words, land includes not only the land surface, but also the fish in the sea, the heat of the sun that helps to dry grapes and change them into resins, the rain that helps farmers to grow crops, the mineral wealth below the surface of the earth and so on. Finally, labour services are enhanced by training: Skill acquisition is often a lengthy and costly process. Another important point to note is that labour is not only a factor of production. For general purposes, it is necessary to classify production into three main groups: Primary production is carried out by ‘extractive’ industries like agriculture, forestry, fishing, mining and oil extraction. In fact, any economic activity takes place to satisfy the consumers. The same plot of land can be used to set up factories or to grow wheat or sugarcane or even to build a stadium. Last Update: 2020-10-19 Therefore, any change in atmos­phere has an effect on his health feelings etc. 5. But this is often offset by various kinds of soil erosion.

This is particularly true in the capitalistic or even mixed economy which is based on the price-profit system.

Resources, which we shall call factors of production, are combined in various ways, by firms or enterprises, to produce an annual flow of goods and services. But enterprise is a separate factor because the first three factors are substitutable to some extent, but the fourth factor is a specific factor and cannot be substituted by any other factor. The result of having a bottleneck are stalls in production, supply overstock, pressure from customers, and low employee morale. If a business­man is asked, “What is your capital?” he will always mention a sum of money. However, adjust­ments in the labour market, such as increasing the supply of a particular skill, often requires a long time. But when a labourer sells his labour, he retains the quality with him. The entrepreneur under­takes both these risks in production. usually said of felled trees, but sometimes of those standing.

So, it logically follows that the entire return from land—called rent—is a surplus income (at least from society’s point of view). In the business world, however, capital is always expressed in terms of money. (2) That almost everything is produced to satisfy the needs of the workers, who are the main consumers. Some capital equip­ment is mobile in both the geographical and occupational sense. 10. If it stated as percentage of the principal, represen­ting the sum paid by a borrower who needs finance to purchase a piece of capital equip­ment. → optimum 2. Capital can be classified in two broad categories that which is used up in the course of production and that which is not.

Modern production is very risky as an entrepreneur is required to produce goods or services in anticipation of their future demand. 3. As Alfred Marshall has put it “while the part which nature plays in production shows a tendency to diminishing return, the part which man plays shows a tendency to increasing return”. Usage Frequency: 3 Those who provide services Such as hair-dressers, solicitors, bus drivers, postmen, and clerks are as much a part of the process of satisfying wants as are farmers, miners, factory workers and bakers. Industries in the tertiary sector produce all those services which enable the finished goods to be put in the hands of consumers.

The term covers clerical, managerial and administrative functions as well as skilled and unskilled manual work.

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