There are four requirements for the production of goods and services.

1.	There are four requirements for the production of goods and services. What are they? Explain
Answer» Explanation: There are four requirements of PRODUCTION of goods and services. These requirements are known as factors of production. These are : (i) Land: By land we mean not only the level surface but all gifts of nature which are amenable to human control, such as water, forests, minerals, etc. (ii) Labour: Manpower required to do the work. The mental and physical work done by people in an ORGANISATION comes under labour. (iii) Physical Capital: It means a variety of inputs required at every stage during production. They can be classified as: (a) Fixed capital: It includes TOOLS, MACHINES and building that can be used for production for many years. (b) Working capital: Money in land and raw material that has to be used in current products are included in working capital. (IV) Enterprise: It means need of knowledge and enterprise to put together all other factors of production and ability to sell the produce in the market. This is also called human capital.

There are four requirements for the production of goods and services. What are they? Explain

Answer»

Explanation:

There are four requirements of PRODUCTION of goods and services. These requirements are known as factors of production. These are :

(i) Land: By land we mean not only the level surface but all gifts of nature which are amenable to human control, such as water, forests, minerals, etc.

(ii) Labour: Manpower required to do the work. The mental and physical work done by people in an ORGANISATION comes under labour.

(iii) Physical Capital: It means a variety of inputs required at every stage during production.

They can be classified as:

(a) Fixed capital: It includes TOOLS, MACHINES and building that can be used for production for many years.

(b) Working capital: Money in land and raw material that has to be used in current products are included in working capital.

(IV) Enterprise: It means need of knowledge and enterprise to put together all other factors of production and ability to sell the produce in the market. This is also called human capital.

There are four requirements for the production of goods and services. What are they? Explain

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