Question

what is the basic aim of production what are the requirements for the production of goods and services

Answer 1

A.  The aim of production is to produce the goods and services that we want. There are four requirements for production of goods and services.

a.  Land and other natural resources such as water, forest, minerals, etc.

b.  Labour i.e. people who carry out the work for production.

1.  Skilled labour: Highly educated workers to perfARm the necessary tasks.

2.  Semiskilled labour or unskilled labour: They can do manual  work.

c.  Physical capital: The variety of inputs required at every stage during production.

1.  Fixed capital: They can be used in production over many years.

2.  EX: Tools, machines and buildings.

3. Working capital: The raw material and money in hand are called working capital. They are used  up in the process of production and alter from day-to-day.

d.  Human capital: Human knowledge and enterprise is needed to put together land, labour, and physical capital and produce an output. This is called human capital