1.3 Factors Of Production

Question 1

4 factors of production

Answer 1

Land, capital , entrepreneur and labour

Question 2

Meaning and reward of land.

Answer 2

Natural resources in an economy such as farmland and mineral deposits

Rent

Question 3

Meaning and reward of labour

Answer 3

Human Resources of an economy, including both physical and mental aspects of work

Wages

Question 4

Meaning and reward for capital

Answer 4

Physical resources including anything that can be regarded as made by humans to aid production

Interest

Question 5

Meaning and reward for enterprise

Answer 5

An entrepreneur is an individual who supplies product to a market to makes profit

Profit

Question 6

Division of labour meaning

Answer 6

Division of labour occurs when workers specialise on very specific tasks

Question 7

Advantages of division of labour

Answer 7

1. Ach worker specialises in tasks for which that worker is best suited for
2. Workers only need to be trained for 1 task. Hence training cost is lower

3.less time is wasted as workers no longer need to move from 1 task to another

4. Such approaches enables production line methods to be employed and allows increased use of machinery. Thus increase in productivity and reduce average cost of production.

Question 8

Disadvantages of division of labour

Answer 8

1. Monotony and boredom for workers, leading to decrease in productivity
2. Loss of skills as workers are trained in one particular task
3. A strike by a group of workers could bring the entire production facility to a standstill

4.lack of variety