Question

explain any three requirements for the production of goods and services

Answer 1

Man, Machine and money

Answer 2

Following are the four requirements of the production of goods and services :-

1) LAND :- It is a fixed and scarce factor which includes other natural factors such as water , forests and minerals .

2) LABOUR :- Who do the work is called Labour .

3) PHYSICAL CAPITAL :- It includes fixed capital like tools , machines , building etc , and working capital like Money in hand , Raw material etc .

4) HUMAN CAPITAL :- Human capital is required to put land , labour and physical capital together for production of goods and services . It is also known as entrepreneurship .