The Factors of Production (Cambridge (CIE) IGCSE Economics)

Exam Questions

1 hour30 questions
11 mark

Which combination of a factor of production and its factor income is not correct?

 

factor of production

factor income

A

capital

interest

B

enterprise

profit

C

labour

dividends

D

land

rent

    Did this page help you?

    21 mark

    On which factor of production does innovation directly depend?

    • decisions of entrepreneurs

    • high inputs of capital

    • long hours of manual labour

    • plentiful supplies of land

    Did this page help you?

    31 mark

    What is the key role of an entrepreneur?

    • inventor

    • risk taker

    • shareholder

    • worker

    Did this page help you?

    41 mark

    What is classified as one of the four economic resources?

    • consumption

    • enterprise

    • production

    • trade

    Did this page help you?

    51 mark

    Which factor of production involves risk-taking?

    • capital

    • enterprise

    • labour

    • land

    Did this page help you?

    11 mark

    What is not a factor of production?

    • a $20 banknote

    • an office

    • a photocopier

    • a secretary

    Did this page help you?

    21 mark

    A government wishes to increase agricultural output. It gives farmers the tools to irrigate the farmers’ fields. Which factors of production are provided by the farmers?

    • capital and enterprise

    • enterprise and labour

    • labour and land

    • land and capital

    Did this page help you?

    31 mark

    In farming, what is an example of what economists call capital?

    • savings the farmer has in the bank

    • shares in a farming company

    • the money the farmer set aside to pay taxes

    • the tractor owned by the farmer

    Did this page help you?

    41 mark

    What would an economist regard as an example of the factor of production capital?

    • an individual’s purchase of stocks and shares

    • borrowing by a firm to pay for electricity

    • the building by a firm of a new factory

    • total savings by individuals in a country

    Did this page help you?

    51 mark

    Which factor of production is not represented in the list shown?

    bananas           a factory          goats               a risk taking investor

    • capital

    • enterprise

    • labour

    • land

    Did this page help you?

    61 mark

    What would be classified by an economist as the factor of production known as land?

    • a discovery of oil in the South China sea

    • an oil rig bought by an oil company

    • money held by the oil companies in their bank accounts

    • the productivity of oil workers

    Did this page help you?

    11 mark

    Reena makes a living by selling paintings of the town in which she lives. She sells them in an open-air market once a week.

    In order to be able to sell more pictures in a week she decides to buy a studio, pay someone to help in the studio and try to increase demand by advertising in the local paper.

    Which factors of production were changed?

    • capital only

    • labour and capital

    • labour and land

    • labour only

    Did this page help you?

    21 mark

    Which statement about factors of production is correct?

    • Capital is the amount of money borrowed from a bank.

    • Labour is output made by an employee.

    • Land includes commercially grown rice crops.

    • Profit is the reward for enterprise.

    Did this page help you?

    31 mark

    What is most likely to increase the occupational mobility of labour?

    • building more houses

    • increased spending on re-training schemes

    • increased total government spending

    • increasing the information on job availability

    Did this page help you?

    41 mark

    Which example of a factor of production in the fishing industry is correct?

     

    factor

    example

    A


    B


    C


    D

    capital


    enterprise


    labour


    land

    charges on loan for fishing boat

    salaries of fish warehouse managers

    profits of fish shop owners

    fish in the sea

      Did this page help you?

      51 mark

      John owns a bakery and produces various types of bread. To meet the increasing demand, he decides to invest in modern baking machines. He also hires skilled bakers to improve the production process and quality of bread.   Which factors of production were changed?

      • Land and Labor

      • Labor and Capital

      • Capital and Entrepreneurship

      • Entrepreneurship and Land

      Did this page help you?