Tag: land,labour, capital and entrepreneur

Primary sector of an economy deals with the production of raw materials and basic foods. Examples of primary sector are: agriculture, mining, forestry, etc. Under-developed countries mainly depends on primary activities for the employment opportunities.

The basic factors of production are Land, Labour, Capital and entrepreneur. 

More the natural resource a country has ,more prosperous it becomes.As the per capita resource gets increased,production increases and hence the economy gets richer.

Improved seeds(HYV seeds), chemical manures and machines(like tractors,improved irrigation facilities) assist in maximizing the productivity of land, since they would bring in efficiency in the production process.

Productivity of land refers to the total output divided by the per unit area of land.Hence the productivity of land is measured to check the extent of efficiency.

Fertility of land is one of the factor which is responsible for measuring the productivity of land. More fertile the land is, more will be the production of crops (output).

Sometimes the State is unable to improve the conditions of agricultural sector. Proper investment in this area is often neglected by the state. Hence, the State's negligence towards agriculture can result in low productivity of land which will result the economy to fall in an low equilibrium trap.

More efficient the land gets used in an economy,more the economy gets developed and rich. Hence the land influences the economic growth of a country.

Land maintains the ecological balance. Ecology is the science of the study of ecosystems. Ecological balance is a state of equilibrium where all the species live in harmony.

Water resources close to farm lands is essential for better productivity due to better irrigation. This s especially important in under developed and developing countries as they lack infrastructure to for proper irrigation facilities.