Productive Mechanism Flashcards
What is productive mechanism?
The mechanism or system which determines the production of various goods and services in the economy
What is production?
The process of creating various goods and services which are consumed by the people of the country
What is input or factor of production?
Anything that is used in the production process is called input or factor of production
What is output?
Whatever is obtained from the process of production is called output
What is utility?
The want satisfying power of a commodity is called utility
OR
The power of a commodity to satisfy human wants is called Utility
What are the types of utilities?
- Form Utility
- Place Utility
- Service Utility
- Time Utility
How is form utility created?
By changing the form of a commodity
How is place utility created?
By changing the location of a commodity
How is service utility created?
By performing services
How is time utility created?
By making stock of goods at one period of time, and by supplying it at another period of time
____________ creates time utility by maintaining buffer stocks
Food Corporation of India (FCI)
In primitive economies, production was mainly for ___________
self consumption
What are the determinants of volume of production?
- Natural Resources
- Technology
- Role of the Government
- Factors of Production
Production depends on the available ____________
natural resources
Land, labour, capital, oranisation are considered to be the ___________ of production
agents or factors
What do you mean by factors of production? Name them
The goods and services with the help of which the process of production is carried out, are called factors of production. They are: Land Labour Capital Organisation
What is land?
Land is defined to include not only land surface but also all the other free gifts of nature
To be considered an agent of production, a factor must be ____________________ and ___________________
amenable to human control and people should be able to control it’s supply
What is labour?
The physical or mental effort exerted for the purpose of producing a commodity or a service
What is capital?
Produced means of production
………………………… of the government affects the volume of total production in a country
economic policies
The government can also affect the production by improving the supply of various …………………………
infrastructural facilities
Another name for organisation?
entrepreneurship
………………………….. utility is created when wood is turned into a table
form utility
…………………. utility is created when a commodity is moved from one location to the other
place utility
The services provided by middlemen, lawyers, doctors and teachers create ……………… utility
service utility
Production for ………………………… cannot be considered as production
self consumption
Who included all natural resources under the heading of land?
Prof. Alfred Marshall
