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 |
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The Factors of Production (CIE IGCSE Economics)
Topic Questions
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
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31 mark
What is the key role of an entrepreneur?
inventor
risk taker
shareholder
worker
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41 mark
What is classified as one of the four economic resources?
consumption
enterprise
production
trade
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51 mark
Which factor of production involves risk-taking?
capital
enterprise
labour
land
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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
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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.
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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
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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 |
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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
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11 mark
What is not a factor of production?
a $20 banknote
an office
a photocopier
a secretary
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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
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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
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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
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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
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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
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