FACTORS OF PRODUCTION

   These mean the production resources required to produce a given product. Fraser defined factor of production as “a group or class of original productive resources”. The factors of production have been traditionally classified as land, labour, capital and organization, the details of which are presented below: LAND According to Marshall, land means “the materials and forces which nature gives freely for man’s aid, inland and water, in air and light and heat”. Land refers to soil used for cultivation of construction. But in Agricultural economics land means the materials and the forces which nature gives freely for man’s aid, inland and water, in air and light, and heat (Marshall) {i.e. many things such as sunshine, rain, wind, waterfalls, seas, rivers, minerals, magnetism, forests, animals etc., given free by nature and economically useful to mankind are included in it}. Characteristics/peculiarities of land: 1. Land is the free gift of nature and not man-made i.e. land has...