Inputs for production
Also called: Inputs · Topic: Factors of Production, Entrepreneurship and Startups · NCERT: Class 7, Ch 12 "Understanding Markets"; Class 8, Ch 7 "Factors of Production"
Meaning
Inputs for production are the materials and resources used to make goods and services. Everything we use, such as clothes, a school bag or a phone, goes through a production process that uses inputs. Economists group the basic inputs into four factors of production: land, labour, capital and entrepreneurship. Items bought and used up in making something, like raw materials, are called intermediate inputs. Technology helps a firm get more output from the same or fewer inputs.
Example
A roadside restaurant uses vegetables, fruits, gas and utensils, along with a cook and a helper. A mobile repair shop uses tools, spare parts and the repairer's knowledge of phone parts.
Don't confuse with
- Factors of production: these are the four broad groups that inputs fall into. Intermediate inputs like flour or gas are used up in one round of production. Factors like land or a machine keep providing services.