What is the aim of production explain 4 factors of production of goods services?
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The aim of production is to produce goods and services that we want.
1. The first requirement is land which is important for production of goods and services.
2. The second requirement is the labour
i.e. the people who will do the work. Some production activities require highly educated workers to perform the necessary tasks.
3. The third requirement is physical capital i.e. the variety of inputs required at every stage of production.
There are two types of physical capital :-
a) Fixed Capital - It refers to the funds invested in fixed or permanent things such as tools, machines, buildings etc.
b) Working Capital - It refers to the funds invested in temporary things such as raw materials and money.
4. The fourth requirement is human capital.
HOPE IT HELPS
1. The first requirement is land which is important for production of goods and services.
2. The second requirement is the labour
i.e. the people who will do the work. Some production activities require highly educated workers to perform the necessary tasks.
3. The third requirement is physical capital i.e. the variety of inputs required at every stage of production.
There are two types of physical capital :-
a) Fixed Capital - It refers to the funds invested in fixed or permanent things such as tools, machines, buildings etc.
b) Working Capital - It refers to the funds invested in temporary things such as raw materials and money.
4. The fourth requirement is human capital.
HOPE IT HELPS
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