Explain any three requirements for production of goods and services.
Answer:
Points to remember:
Answer to be written in the exam:
There are four requirements for the production of goods and services.
- The first requirement is land, and other natural resources such as water, forests, and minerals.
- The second requirement is labor i.e, people who will do the work. Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do the manual work.
- The third capital is physical capital i.e, the variety of inputs required at every stage during production.
- The fourth requirement is knowledge and enterprise to put together land, labor, and physical capital and produce an output. It is called human capital.
*Any 3 points
