The correct option is (c).
Explanation
An industrial system is functionally divided into inputs, processes, and outputs. Inputs encompass all resources and factors of production required to establish and operate an industry. Outputs refer to the final finished product and the income generated from it.
Statement-wise Analysis:
- Statement 1 is Correct: Labour is a primary factor of production. It constitutes the human resource required for operating machinery, handling raw materials, and managing the production process. Therefore, it is classified as an input.
- Statement 2 is Incorrect: Capital represents the financial resources and physical assets (such as machinery and infrastructure) necessary to start and sustain production. It is a fundamental input. Outputs are the results of the manufacturing process, such as the finished steel and the profits earned.
- Statement 3 is Correct: Site refers to the land or specific location where the industry is established. Since land is a basic factor of production required for setting up the physical plant, the site is considered an input.
Key Takeaway:
In the Iron and Steel industry, inputs include raw materials (iron ore, coal, limestone), labour, capital, site, and infrastructure, whereas outputs are the steel products and the revenue generated.