GLOSSARY AND IMPORTANT INFORMATION
1. Land: It is a factor of production that is used for cultivation or construction.
2. Labor: Labor is another important factor of production. It means human exertion.
3. Capital: It is a wealth other than land which is used for production of wealth.
4. Production process: Organizing and utilizing the factors of production for the production of goods and services is known as production process.Fig: productivity is key to growth5. Production: Production is the creation of value in a commodity.
Example, manufacturing of a car from steel.
6. Working capital: These include the factors of production which are used in production. Raw materials and money in hand are called working capitals.
7. Fixed capital: Tools, machines, buildings can be used in production over many years. These factors of production are called fixed capitals.
Fig: Farmer working in a rice field8. Factors of production: The essential elements which cooperate with one another in process of production. Following are the major factors of productions.
(ii) Physical capital
(iv) Human capital
9. Human capital: It is the most important factor of production which put together with land labor and physical capital and produce an output either to use for self consumption or to sell in a market.
10. Multiple cropping: To grow more than one crop on a piece of land during the year in known as multiple cropping.Fig: Multiple cropping11. Yield: It is measured as crop produced on a given piece of land during a single season.
12. Non-farm activity: It refers to the activities in a village other than farming. This includes activities like manufacturing, transportation, shop-keeping etc.
13. Green Revolution: The large increase in agriculture production after 1976 due to adoption of new Agricultural strategy which implied a simultaneous use of better and modern agriculture inputs.