Question

QUESTION:-
what are the four requirements for the production of goods and services?​

Answer 1

Answer:

$\rm{ \red{ \underline{land}}}$

The first requirement is land and other natural resources such as water, forest and minerals.

$\rm {\red {\underline{labour}}}$

The second requirement is Labour. Some production activities need to be done by highly educated workers. On the other hand, some activities require manual work.

$\rm{ \red{ \underline{physical \: capital}}}$

Physical capital is of two types.

• Fixed capital

It refers to investment in those outputs which can be used for years. Such as:- tools, machines,and buildings.

• Working capital

Raw material and money in hand are working capital.

$\rm{ \red{ \underline{ human \: capital}}}$

Above three requirements cannot produce goods and services themselves. Hence, humans are required to supervise to produce goods and services.

Answer 2

Explanation:

The main requirements for the production of goods and services are land, labor, physical capital, and human capital.