What is the aim of production? What are the factors of production? discuss.
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The aim of production is to produce the goods and services to generate wealth that we want for ourselves.
Factors of production is an economic term which refers to the input required for the production of goods. The four factors of production are land, labour, physical capital and human capital. These are describes as follows:
1. Land is the first factor and the basic requirement for production along with other natural resources like water and minerals.
2. Labour is the second factor, that is, the people who will do the work. Some production activities require highly educated labours in order to perform necessary tasks.
3. The third capital is physical capital, that is, the input required at every stage of production. It includes:
➡ Fixed capital: Fixed capital is the capital required for production over many years. For example; buildings, tools and machines.
➡ Working capital: Working capital includes raw materials and the money in hand.
4. The fourth and the last factor is the human capital, which refers to the use of knowledge to be able to perform labour to raise some economic value.
Here's your answer!!
The aim of production is to produce the goods and services to generate wealth that we want for ourselves.
Factors of production is an economic term which refers to the input required for the production of goods. The four factors of production are land, labour, physical capital and human capital. These are describes as follows:
1. Land is the first factor and the basic requirement for production along with other natural resources like water and minerals.
2. Labour is the second factor, that is, the people who will do the work. Some production activities require highly educated labours in order to perform necessary tasks.
3. The third capital is physical capital, that is, the input required at every stage of production. It includes:
➡ Fixed capital: Fixed capital is the capital required for production over many years. For example; buildings, tools and machines.
➡ Working capital: Working capital includes raw materials and the money in hand.
4. The fourth and the last factor is the human capital, which refers to the use of knowledge to be able to perform labour to raise some economic value.
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Hyy
Your answer is here
It is used for various purposes such as mining, agriculture, running industry etc.
It is important requirement for production of goods services. without land, production is impossible. Rent is ruminations for land.
Your answer is here
It is used for various purposes such as mining, agriculture, running industry etc.
It is important requirement for production of goods services. without land, production is impossible. Rent is ruminations for land.
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