Question

explain the four requirement of production of goods and services explain the importance

Answer 1

1) Land -
The land is the physical place where all the economic activity takes place. Land plays an important part in production because the land itself and the resources on it are usually limited. 

2) Labor -

It seems obvious, but things cannot be produced unless someone makes them. So, labour is another important requirement of production of goods and services. Labor represents all the people that are available to transform resources into goods or services that can be purchased. The land is the physical and mental efforts of human beings used for the production of goods and services.

3) Physical Capital - 

Physical capital refers to the variety of inputs that are needed at different stages of production such as tools, machinery, finances, raw material etc. 

4) Human Capital -

Human capital is the fourth requirement of production of goods and services. Human capital is the knowledge and effort that is put in to arrange for the other requirements like land, labour and physical capital to start the production of goods and services.