Q1. What is the aim of production?
Dear student,
The aim of production is to produce goods and render services to the economy. Keeping this in mind there are some factors of production. They are-
The aim of production is to produce goods and render services to the economy. Keeping this in mind there are some factors of production. They are-
- Land- This is the initial requirement for production of anything. Other natural resources are water, forests, minerals, etc.
- Labour- This is the next necessary factor for production. Some production activities even require highly educated workers to perform necessary tasks.
- Physical capital- Physical capital are the variety of inputs that are required at every stage during production like, tools, machines, buildings, raw materials, money in hand, etc.
- Human capital- The last factor is human capital, without which we cannot produce best results. Human capital such as knowledge, which we need so that we can produce best results.