explain the four requirements of the prosuction of goods and services . what are the items that come under physical capital?
Answers
The four requirements are:
Land is the first factor of production and it consists of any natural resource used in goods and services production.
Labor is the second factor of production also known as the
human capital, It is the effort that people contribute to the production of
goods and services
Capital is the third factor of production consisting of
machines, tools, infrastructure etc. which is used in production Capital
differs based on the worker and type of work.
Entrepreneurship is the fourth factor of production. It is the person
who combines all 3 factors of production and keeps a check and balance on them
in order to earn profits.
The items that come under physical capital are any of the physical factors of production used in production process for example, land, labor, machinery, capital, cash, equipment, real estate etc.
The items that come under physical capital factors of the physical factors of production used in production process for ex-land, labour,cash, capital, estate.