Thirsty Crow : Factors of Input

Always remember your goal and take steps towards it, no matter how small.

Saving little by little every day can help you achieve all your dreams.

In an economy there are producers and consumers. Producers are people who make goods or provide services. Consumers are people who buy goods and services. As consumers, we love to enjoy the satisfaction from the goods and services we purchase but, as a producer, we look at increasing our output, the amount of something produced. This concept can be explained well through the tale of the thirsty crow. A crow, dying of thirst flew with joy to a pitcher hoping to find some water in it. He found some but, only a little drop at the bottom. Unable to reach he tried to overturn the pitcher but is unable to do so as it is heavy. So he plans to drop in some pebbles, by this the level of the water gradually reaches the top and he is able to quench his thirst. The crow in this case is a producer and a consumer. Think of the pebbles as factors of production and the level of water as the level of output. Factors of Production include land, labour, capital and enterprise. As we increase the factors of production our output also increases.