Which of the following is the main factor for the production of goods and services?

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Knowledge

Physical capital

Labour

All of the above

answer is D.

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Detailed Solution

In order to produce goods and services, Knowledge ,physical capital and labour are necessary as explained below:
1)      The first requirement is natural resources like land, water, forests, minerals, etc.
2)      People who are willing and able to work, i.e., labour. It includes people who can do manual work and specific tasks to provide services like teaching or indulging in scientific research.
3)      At every stage of production, a variety of physical capital is a requirement. This includes both physical and working capital.
4)      Knowledge and entrepreneurship are the fourth requirements. Adequate information about the kind and type of production one is getting into is vital. And so is a support system or organisation.

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