question_answer

What are the main factors for production of goods and services?

Answer:

(i) The first requirement is land and other natural resources like water, forests, minerals, etc. (ii) The second requirement is labour, i.e., the people who will do the work. Some activities require educated workers to perform the necessary task and other activities require workers who can do manual work. (iii) The third requirement is physical capital, i.e., the variety of inputs required at every stage during production. It includes fixed capital and working capital. (iv) Fourth requirement-knowledge and entrepreneur.