1.2 the factors of production

Question 1

define labour

Answer 1

human effort used in producing goods and services

Question 2

define land

Answer 2

gifts of nature available for production

Question 3

define capital

Answer 3

human-made goods used in production

Question 4

define enterprise

Answer 4

risk bearing and key decision making in a business

Question 5

state the factors of production

Answer 5

land, labour, capital, enterprise

Question 6

reward for land

Answer 6

rent

Question 7

reward for labour

Answer 7

wages

Question 8

reward for capital

Answer 8

interest

Question 9

reward for enterprise

Answer 9

profit

Question 10

define consumer good

Answer 10

g/s purchased by households for their own satisfaction

Question 11

define mobility of labour

Answer 11

• ability of labour to change where it works
• or in which occupation

Question 12

define mobility of capital

Answer 12

• ability of capital to change where it works
• or in which occupation

Question 13

define occupational mobile

Answer 13

capable of changing use

Question 14

define geographically mobile

Answer 14

capable of moving from one location to another location

Question 15

is land occupationally mobile? why

Answer 15

• most land is
• can be used for number of diff purposes

Question 16

is land geographically mobile?

Answer 16

• typically no

Question 17

reasons for geographical immobility of labour

Answer 17

• price and availability of housing in diff areas/countries
• family ties
• educational systems in diff areas/countries
• lack of info
• restriction of mvmt of workers

Question 18

explain geographical mobility of capital

Answer 18

• can be transferred from one part of country to another
• however, some cannot

Question 19

explain occupational mobility of capital

Answer 19

• some are made for specific purposes and cannot be changed easily
• however, some can change use

Question 20

explain mobility of enterprise

Answer 20

most mobile fop
- occupationally mobile: change industry, skills can be used in any industry
- geographically mobile: move locations

Question 21

causes of changes in quantity of land

Answer 21

amount of physical land in existence doesnt change much w time
- soil erosion vs land reclamation
- deforestation
- renewable/non-renewable resources
- over-fishing/hunting

Question 22

influences on quality of land

Answer 22

• fertilisers
• purity of rivers/good drainage

Question 23

influences on quantity of labour

Answer 23

number of workers available
- size of population
- age structure of population
- retirement age
- school leaving age
- attitude to working women
number of hours they work
- length of working day
- part-time/full-time
- duration of overtime
- length of holidays
- time lost through sickness/illness

Question 24

influences on quality of labour

Answer 24

• education
• trainning
• experience
• healthcare

Question 25

influences on quantity of capital

Answer 25

- investment - depreciation

Question 26

influences on quality of capital

Answer 26

- advances in technology allow higher output/better quality

Question 27

influences on quantity of enterprise

Answer 27

- education - lower taxes on firms - reducing regulations - immigrant entrepreneurs

Question 28

influences on quality of enterprise

Answer 28

- education - training - healthcare - experience