Basic aim of production was to produce goods and services that we want.
Four requirements for production of goods and services were:
Land and other natural resources like water, forests, minerals Labour, i.e. people who would do the work.
Each worker is providing the labour necessary for production.
Third requirement is physical capital, i.e. variety of inputs required at every stage during production.
Fourth requirement is knowledge and enterprise to be able to put together land, labour and physical capital and produce an output.
