Factors Of Production – Land

& Labor
Done by : Rayon Pakem, Kevin, Melvin & Vedwan Ghosh
INTRODUCTIO
N
Land
 Characteristics of Land

🠶 Free Gift of Nature : Land is a gift of nature given to man free of cost
🠶 Limited in Supply : A peculiar feature of land is its fixed supply.
🠶 Primary Factor of Production : Land is a basic factor of production.
🠶 Passive Factor of Production : Land is a passive factor of production.
🠶 Permanent : Land is indestructible and thus, it cannot go out of existence.
Productivity of Land
 Determinants of Productivity of Land

🠶 Natural Factors: Productivity of land is largely determined by its natural qualities.

🠶 Size of Holdings: Productivity depends on the size of the holdings.
🠶 Human Factors: Productivity of land depends upon the knowledge and training of
workers.
🠶 Improvements of Land: Productivity of land is affected by land development
measures.
🠶 Location of Land : The location of land also affects the productivity of land. Land
located near to the market is supposed to be more productive.
 Characteristics of Labor

🠶 Labor is perishable: Labor is perishable when not done.

🠶 Labor is an active factor of production: Labor is the only active factor
🠶 Labor cannot be separated from laborer: Labor cannot be separated
unlike land and capital.
🠶 Labor sells his labor, not himself
🠶 Labor is mobile: Labor is the most mobile factor.
 Causes for Low Efficiency of Labor in India

🠶 Hot Climate : India is a subtropical country and its climate is hot.

🠶 Low Wages : The wages of laborers is not sufficient to keep themselves physically and
mentally fit.
🠶 Incongenial Environment : Indian workers have to work under very unhygienic conditions.
🠶 Poor Technology : The machines are either outdated or poor standard.
🠶 Education and Training : It is found that Indian workers have poor education.
Division of Labor
Horizontal Division Of Labor
Different divisions of work are undertaken
simultaneously.
The different parts of an automobile can
be manufactured simultaneously.
The parts can be assembled together at
the end.
The division of work between the workers
engaged in producing cars, is an example
of horizontal division of labor,
Vertical Division Of Labor
The successive stages of production of a
commodity is called vertical division of
labor,
To produce cotton textile, raw cotton has
to be transformed into yarn by spinning.
Then, yarn can be woven into cloth.
Spinning and weaving cannot be done
simultaneously.
Advantages

🠶 Right Man at the Right Job

🠶 Increase in Efficiency of Labor
🠶 Production of Superior Goods
🠶 Inventions
🠶 Cooperation among workers
Conclusion

In conclusion, understand the factors of production is fundamental to

comprehending the character of our economic systems.