Factors of Production

Question 1

What are the four factors of production?

Answer 1

1. Capital
2. Entrepreneur
3. Land
4. Labour

Question 2

State what Capital is and give an example

Answer 2

Capital refers to investment or new technology in firms e.g computers or cash registers

Question 3

State what Entrepreneurship is and give an example

Answer 3

Entrepreneurship refers to setting up your own business e.g bill gates or steve jobs

Question 4

State what Land is and give an example

Answer 4

Where you can retrieve raw materials e.g coal or fish

Question 5

State what labour is and give an example

Answer 5

Workers who help produce goods/services e.g full time worker/ part time worker

Question 6

What are rewards for Capital, Entrepreneurship, Land and labour?

Answer 6

1. Interest
2. Profit
3. Rent
4. Wage

Question 7

Explain how in a coffee feild the four factors of production may be used

Answer 7

An entrepreneur will buy the land needed to farm the cops. workers will then be hired to take care of the crops and then harvest them when time comes. Capital such as baskets and tractors will be bought to help the workers.