Factors affecting the FOP'S

Question 1

FACTORS AFFECTING LAND /THE SUPPLY OF NATURAL RESOURCES

Answer 1

• Natural disasters
• overhunting
• overfishing
• discovery of natural resources
• reclaimation of land

Question 2

labour

Answer 2

the human capital used in the production process

Question 3

the importance of labour

Answer 3

makes use of the land and capital resources

Question 4

factors affecting labour

Answer 4

1. the health of the worker
2. work ethics
3. education and skill building
4. quality of the capital used (tools, equipment)

Question 5

capital

and its importance

Answer 5

tools and equipment used in the production process

it inccreases the productivity of labour

Question 6

scarcity

Answer 6

In other words, scarcity limits the choices available to the consumers who ultimately make up the economy. This causes the ‘economic problem’ beacuse satisfying all human needs and wants is difficult with limited means. The economy is a complex system of inter-related activities where the three economic agents interact (government, firms, consumes) Without consumption, or some modicum of consumer satisfcaton how will money be allocated between the government and firms?
Gving rise to the ‘economic problem’.

Question 7

Opportunity cost

Answer 7

the value of the next best alternative, which is foregone when a choice is made.

e.g. three choices between a cd, a dvd and a player
the cd is chosen sot he opportunity cost is the dvd

Question 8

rules for graphs in economics

Answer 8

must have a border
a title
labelled well
d=s where equilibrium occurs
or when anything equals another

Question 9

what is a market?

Answer 9

any place where two or more economic agents (government, producers, consumers) meet to facilitate the purchase /exchange of goods and services

Question 10

factors affecting the supply of capital

Answer 10

increase in borrowing

Question 11

enterprise/entrepreneurship

Answer 11

the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit

organises and co-ordinates the other factors of production to make profits

Question 12

role of the entrepreneur

Answer 12

• 1. conceptualisation of the business idea
• 1. sourcing funds to fund working capital
• 1. undertaking all risks
• 1. evaluating performance
• 1. coordinates the fops, soucre the cheapest factors combine in the best way to minimise cost and maximise profit
• decision to retrench, or recruit/hire more workers
• undertake research and development R&D. innvate and invent new products

Question 13

Factors influencing Economic decisions made by consumers

Answer 13

Income
Level of education
Peer Pressure
The rate of interest
Natural disasters
Political climate

Question 14

Factors influencing Economic decisions made by firms

Answer 14

Demand
Costs
Profitability
Resources
Industrial relations

Question 15

Factors influencing Economic decisions made by government

Answer 15

Governments have to make decisions as to how to allocate limited resources amongst all those entities competing for their use.