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 productiveut 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 



10 



