1.2.1

Question 1

Land

Answer 1

natural resources ranging from actual land space to air, minerals, lakes, climate. Reward for owning land is the income generated

Question 2

Labour

Answer 2

Human resources or a nations population, but not everyone is able to work. Reward for labour is a wage / salary

Question 3

Capital

Answer 3

any man-made item to help production e.g. machines and offices. Reward for capital is the rate of return that is earned.

Question 4

Entrepreneur

Answer 4

This is the organisation of land, labour, capital and the risk taken. Reward for entrepreneur is profits.

Question 5

Primary

Answer 5

extracting raw materials from the ground / earth

Question 6

Secondary

Answer 6

manufacturing / processing the raw materials into goods and services

Question 7

Tertiary

Answer 7

selling goods and services

Question 8

Added value

Answer 8

the value of the output is greater than the costs of production, thereby earning a profit for the business