Economics: Chapter 7- Factors of Production

Factors of Production

The resources or inputs used in producing goods and services. [Land, Labour, Capital, and Entrepreneurship].

Business

A firm, a shop, a factory, etc., which produces or sells goods or provides a service.

Land

Encompasses geographical land and natural resources.

Labour

The physical and mental effort used in production.

Human Capital

The specialised skills, knowledge, abilities, and expertise required to perform labour.

Training

The process of learning the required skills to do a particular job or activity.

Kaizen

A Japanese concept meaning “continuous improvement” that has been applied in Japan since the mid-1940s.

Adult Literacy Rate

Percentage of people aged 15 and above who can read and write with understanding a short, simple statement about there daily life.

Adult Literacy Rate in India

Male- 85%, Female- 70% as per World Bank estimates in 2023.

Demographic Dividend

The benefit a country gets when it has a large number of young and working people, and few depend on them, allowing the country to grow businesses and improve living standards. [In India, more than 65% of the population is 35 or younger].

Vishwakarma Puja or Ayudha Puja

Worship of tools in India since ancient times.

Shilpa Shastra

Detailed design guides on architectural pieces.

Stitched Shipbuilding

A unique 2000-year old Indian stitching technique used to conduct maritime trade across the Indian ocean, involving the stitching of wooden planks together using cords, thus making them flexible.

Asset

Any asset, whether physical or financial, used to produce goods and services.

Stock Market

A special type of market where shares are bought and sold.

Dividend

An amount of money paid regularly by a company to its shareholders out of its profits.

Entrepreneurship

Starting a personal business or creating a new project/business to solve a problem by an entrepreneur.

Entrepreneur

A person who comes up with an idea, takes risks, gathers other factors of production, and works hard to make their startup idea successful.

Startup

An entrepreneurial venture with limited resources that aims at rapid growth and expansion while leveraging technology.

J. R. D. Tata

Entrepreneur, industrialist, and philanthropist Jehangir Ratanji Dadabhoy Tata born in 1904. He started India’s first airline, Tata Airlines, in 1934, which later became Air India. He received the Bharat Ratna in 1994 (India’s highest civilian award).

SWAYAM

Study Webs of Active Learning of Young Minds, offering courses for Grade 9 onwards, operating on MOOCs (Massive Open Online Courses).

National Career Service

Government Website that helps people find job opportunities across various sectors.

India

World’s second-largest mobile phone manufacturer after China in 2025.

Corporate Social Responsibility (CSR)

India was the first nation to bring a CSR law in 2014 that mandated companies to spend 2% of their average profits of the last three years on CSR activities.