Question

What is the basic aim of production ? What are the essential four requirements for production.explain briefly

Answer 1

the basic aim of production is that there ay nit be the shortage of factors
four requirements 9f production are
first the availability of minerals
second is the factors of production
third is the help from the government

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.