Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Which of the following is NOT a requirement for production of goods and services?

Options:

Land 

Labour

Capital

Profit

Correct Answer:

Profit

Explanation:

Following are the 4 factors responsible for the production of goods and services:

  1. The first requirement is land, and other natural resources such as water, forests, minerals.
  2. The second requirement is labor, i.e. people who will do the work.
  3. The third requirement is physical capital, i.e. the variety of inputs required at every stage during production. 
  4. Fourth is human capital as you will need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output either to use yourself or to sell in the market.