The factors of production: Practice Questions

In Economics, what does the factor of production capital specifically refer to?

Which situation is most likely to lead to an increase in the quantity of the factor of production capital in an economy?

In a rural area, a large plot of natural forest is cleared to provide a site for a new automated tool factory.
Which factors of production are being utilized in this specific transition?

Which action is most likely to improve the occupational mobility of labour within an economy?

Which reward is specifically associated with the factor of production that organises the other three factors and bears the risks of a business venture?

Explain the difference between geographical mobility and occupational mobility in relation to the factor of production labour.

Identify the reward for the factor of production enterprise and explain one way it differs from the reward for labour.

Analyse how a significant increase in the quantity of capital through automation in a specific industry could lead to a reduction in the occupational mobility of its labour force.

A company produces smartphones using various resources.
(a) Identify the four factors of production and state the reward earned by capital.
(b) Explain one reason why a worker might find it difficult to move from one type of job to another, such as moving from being a coal miner to a computer programmer (occupational immobility).

A farmer in a rural region decides to leave his land and move to a major city to seek employment in a car manufacturing plant.

a) Identify two factors of production used in the manufacturing of cars and state the reward associated with each factor identified.

b) Explain two reasons why the geographical mobility of labour might be low for workers attempting to move from rural to urban areas for work.