Cambridge International AS Level · Economics (9708)

Factors of production: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Factors of production.

9 questions15 marksFree, no account

Question 1

1 mark

Which of the following is correctly classified as a capital factor of production?

Question 2

1 mark

What is the primary role of the entrepreneur in contemporary economies?

Question 3

1 mark

An economy is experiencing increasing opportunity costs as it moves resources from the production of agricultural goods to manufactured goods. What does this imply about the nature of the factors of production in this economy?

Question 4

1 mark

Which of the following is classified as capital in economics?

Question 5

1 mark

A self-employed gardener uses their own tools and rents a small shed to store equipment. Which row correctly identifies the rewards for the factors of production involved?

Question 6

2 marks

Identify the specific reward earned by the factor of production known as enterprise and explain its role in a contemporary economy.

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Question 7

3 marks

Explain the difference between human capital and physical capital as they relate to the factors of production.

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Question 8

2 marks

How does the division of labour lead to an increase in the total output of a firm?

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Question 9

3 marks

A manufacturing firm is considering expanding its operations.
(a) Identify and explain the four factors of production that the firm would require for this expansion.
(b) Distinguish between human capital and physical capital in the context of this manufacturing firm.

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