Question

What is the aim of production ?State any three requirements for production? ​

Answer 1

The aim of production is to produce the goods and services to generate wealth that we want for ourselves.

1)Human capital;the knowledge and enterprise of human is needed to put together land,labour, and physical produce an output. ...

2)Land and other natural resources such as water,forest,and minerals...

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Answer 2

Explanation:

The aim of production is to produce goods and services that we want.

• The essential four requirements for production of goods and services are:

i) Land and other natural resources like water, forests, and minerals.

ii) Labour, i.e. who will do the work. Each worker is providing the labour necessary for production.

iii) The third requirement is physical capital, i.e. variety of inputs required at every stage during

production. There are two types of Physical capital – Fixed capital (i.e. Tools, machine, building),

and another is Working Capital (i.e. Raw materials and Money).

iv) The fourth requirement is knowledge and enterprise to be able to put together land, labour and

physical capital and produce an output. Either to use yourself or to sell in the market. This is

called human capital.