AGRICULTURAL ECONOMICS 



things. The term capital will be used at times to 

 designate the money value of capital-goods. 



In order that the land and the capital-goods 

 shall be most productive it is necessary that man 

 should do his part. The work required for this, 

 whether intellectual or physical, and whether per- 

 formed by the farmer himself or by hired men, 

 is, in most economic literature designated by the 

 term labor. 



The activities of man as a factor in agricul- 

 tural production may be divided into two classes : 

 first, management, which includes that activity 

 which is requisite to the planning and supervision 

 of the operations of the farm; and, second, the 

 performance of certain tasks, such as plowing, 

 sowing, harrowing, etc., as directed by the man- 

 ager. The latter is usually called "labor," which 

 is the narrower and more common use of this 

 term. Both of these functions, labor and man- 

 agement, are commonly performed by farmers in 

 this country, although to hire laborers to per- 

 form many of the operations of the farm is also 

 common. For many purposes it seems more 

 convenient to follow the practise of using the 

 term labor in its inclusive sense, and yet for cer- 

 tain purposes of analysis it is necessary to make 

 the distinction between labor in this narrower 

 sense and management 



These three, land, capital-goods, and labor, or 

 man as a manager and as a laborer, are called the 



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