What are the essential four requirements for production
What are the essential four requirements for production?
Explain the four requirements of the
production of goods & services.
Answer: Four essential requirements for production of goods and services are:
1. Land and other natural resources i.e. water, forests, minerals etc.
2. Labour,: People who do the work. A worker provides the labour necessary for production.
3. Physical Capital: variety of inputs required at different stages of production.
4. Knowledge and Enterprise: Knowledge and enterprise to be able to put together land, labour and physical capital and produce an output.