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WHAT ARE THE FACTORS THAT AFFECT THE PRODUCTION OF PALAMPUR?

 The aim of production is to produce the goods and services that we want. There are four requirements for production of goods and services.The first requirement is
land, and other natural resources such as water,forests, minerals.The second requirement is labour, i.e.people who will do the work. Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do manual work. Each worker is providing the labour necessary for production.The third requirement is physical capital, i.e. the variety of inputs required at every stage during production.
(a)Tools, machines, buildings:
Tools and machines range from very simple tools such as a farmer’s plough to sophisticated machines such as generators, turbines, computers, etc.Tools, machines, buildings can be used in production over many years, and are called
fixed capital.
(b)Raw materials and money in hand:
Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. Also, some money is always required during production to make payments and buy other necessary items. Raw materials and money in hand are called working capital
.Unlike tools, machines and buildings,these are used up in production.There is a fourth requirement too. You will need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output either to use yourself or to sell in the market. This these days is called human capital.



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