IMPORTANCE OF PRODUCTION AND VARIOUS FACTORS OF PRODUCTION IN ECONOMICS. production is the art of creating goods and services which is also the creation of utility.; there are several types of production. in order to be able to produce goods and services, there are some important factors to consider. asimportance of production Production is important because of the following production of good is usually carried out by enterprises, firms, factories, company and industries. the location of industry is very key to determining the state of production.. factors of production such as land, capital,labour and entrepreneur are important.:
IMPORTANCE OF PRODUCTION OF GOODS AND SERVICES
- Availability of goods and services: Production helps to ensure that goods and services are made
- available for use by human beings.an
- Improvement in standard of living: Production helps to ensure adequate improvement in the standard of living of many people.
- Increase in wealth of people: Production assists people to accumulate wealth as a result of continuous employment. importance of production
- Increase in export potential: Production also assists a state or nation to boost her export of goods and services to other nations.
- Acquisition of skills: The engagement of people in production leads them to acquire special skills
FACTORS OF PRODUCTION
Meaning: Factors of production refer to agents, components or resources which are combined together to produce goods and services. There are four factors of production. These are:
- Labour is skillful: Labour becomes skillful through education and training.
Labour is a human factor: Labour is a human factor hence its supply can easily be controlled== importance of production
Labour requires motivation: For labour to perform efficiently and increase its productivity, it must be motivated in one way or the other. importance of production
Labour is not predictable: Labour as a factor of production cannot be easily predicted.
Labour is not fixed: The supply of labour, unlike land, is not fixed as it varies in quantity and quality.
Labour is perishable: Knowledge can diminish overtime as a result of continued unemployment, under-employment, age and death.
Labour controls other factors of production: Labour controls and combines all other factors of production to make them more meaningful to the society.
Labour has initiative: Labour can act on its own initiative.