Which is the Most Abundant Factor of Production?

By Shivank Goel|Updated : September 5th, 2022

The resources or inputs needed during the production process to create the finished goods and services are referred to as factors of production. The foundation of the economy is made up of four producing components. The cost of production rises if any of the components are missing, prompting the provider to increase the price to the consumer. In India, the most abundant factor of production is Labour.

Abundant Factor of Production

The four main production variables are land, labour, capital, and entrepreneurship. Labour is the most abundant production factor in India. The term "labour" refers to those who perform manual labour, which is typically an unskilled or semi-skilled job. The present understanding of what constitutes a factor of production is primarily derived from neoclassical economics. It incorporates earlier economic ideas into a single formulation, including socialism's concept of labour as a factor of production.

The land has a broad definition and can take many different shapes as a factor of production. Other options include arable land, commercial property, and the resources found on a particular piece of ground. It is possible to extract and purify natural resources like oil and gold for human consumption. Even with few job possibilities, labour is the most abundant factor in production. Either they come from landless households or those who farm little amounts of land.

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FAQs

  • A nation's principal factor of production is the enormous reservoir of other factors in contrast to other countries. This element can be described in terms of both quantity and cost.

  • The four categories of factors of production that economists distinguish between are land, labour, capital, and entrepreneurialism. The land is the primary factor in production, but this also applies to other natural resources used to make commodities and services.

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