Coupon Accepted Successfully!


Production Activities in a Village in India

Now that you have the image of a beautiful village in front of your eyes, let us see the kind of production activities take place there:


Production can be classified into two categories :


Production is the process of making goods or rendering service.

Four things are needed for the production of goods and services.


1. Land and other natural resources such as water, timber and minerals.

Land and other natural resources are the basic needs for production.


2. Labour, that is, the people who will do the work.
  • Labourers can be classified as educated labourers or manual labourers. 

3. Physical capital, that is, infrastructure like building, machinery and raw material.

  • Physical capital can also be called ‘fixed capital'.

4. Human capital or management, that is the knowledge and enterprise needed to run the Company.
  • The management is required to put together land, labour and physical capital in an effective manner.

Test Your Skills Now!
Take a Quiz now
Reviewer Name