Question

What is the aim of production? Explain the factors of production.

Answer 1

HEYA USER ❤️

QUESTION :

What is the aim of Production? Explain the factors of production.

ANSWER :

The Aim of production is to produce goods.

Factors of production:

• Land-Land and other natural resources such as water,forests and minerals are important factors of production

• Labour-labour are the people who do work.Some production acitivities require highly qualify labour while some require labour who can do more of physical work.

• Physical Capital -It is the various inputs required at every stage during production.

physical capital can be classified into 2 types :

• working capital eg- raw materials such as clay ,yarn etc.

• fixed capital-Eg machinery, buildings etc

• Human capital -human capital is required to put together the 3 factors such as land, labour and capital.