level of technology and know how that presently exists for conversion these

Level of technology and know how that presently

This preview shows page 34 - 37 out of 81 pages.

level of technology and know how, that presently exists, for conversion these input such that any technological improvements can also lead to the production of greater levels of output. Fig. 1 Production components PRODUCT GOODS SERVICES PRIMARY Agricultural Produces Minerals Forest products etc. SECONDARY Manufacturing DIRECT Teacher Doctor Army Police Civil Servant Clergy etc INDIRECT Communication Insurance Information Banking Transportation Marketing etc.
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24 Egg production process requires at least two inputs, feeds and pullets in addition to other fixed input like water, housing etc .in every case, production can only take place with at least two inputs. 3.2 Factors of Production A factor of production can be defined as that good and service which is required for production. A factor is indispensable for production because without it no production will be possible. The factors can be grouped broadly into four categories though the line of demarcation between some of them is not very clear. 3.2.1 Natural Resources This includes land, water, climate and soil conditions. These are necessary for agricultural production and without them agriculture is impossible. Land is obviously the most important natural resources for agricultural purposes and is often defined economically to include all materials and forces that supplied by nature for use in the production of goods and services. In other words, land include all the other natural resources e.g. water, forest, soil, climate, etc 3.2.2 Labour Labour can defined as all human efforts made in the process of transforming inputs to output. Labour is always used in combination with other factors to produce outputs. The labour may be skilled or unskilled, family, hired or exchange. Labour is measured agriculturally per day, i.e., Man-day. For accounting purposes, children labour is rated 0.5 unit of adult while woman and old men (over 60 years) are rated 0.75 units of adult. But this practice may not be totally acceptable in today’s situation. 3.2.3 Capital Capital can be called produced means of production or intermediate Production. It represents resources produced by past human efforts. Capitals include long-term investment seen as buildings, machinery as well as equipment, implements such as tractors and their implements. Seeds, fertilizers, as well as cash (at hand) are all capital. Capital may also include tree crops, breeding stock (of animals), dairy cattle, and bullocks (used in land preparation) as well as bullock plough. Some capital normally loss value with years, the annual loss in momentary term is called depreciation or capital term called appreciation or capital gain or accumulation. 3.2.4 Management or Entrepreneurship This is a qualitative input as against others, which are quantitative. It is the effective harnessing of the other factors of production for maximum profit.
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25 Thus it involves planning, decision-making, supervision, evaluation and general co-ordination of all activities on the farm.
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  • Spring '17
  • D. Mambo
  • Economics

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