Factors of Production (Resources)

Question 1

What are the 4 FOPs?

Answer 1

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

Question 2

Define Land and give 3 examples

Answer 2

Definition: Natural Resources
Examples: raw materials, minerals, field/ lands, ocean/ rivers, sunlight, air etc.

Question 3

Define Labour and give 3 examples

Answer 3

Definition: Human Resources
Examples: skills, knowledge, expertise, experience

Question 4

Define Capital and give 3 examples

Answer 4

Definition: Man-made resources
Examples: machinery, factory, transport vehicles

Question 5

Define Enterprise

Answer 5

The willingness and ability
to take on the risk and reward
to combine the FOP
to produce G&S

Question 6

Factor Rewards of Land

Answer 6

Rent

Question 7

Factor Rewards of Labour

Answer 7

Wages/ Salary

Question 8

Factor Rewards of Capital

Answer 8

Interest

Question 9

Factor Rewards of Enterprises

Answer 9

Profit

Question 10

What are the 2 types of Factor Mobility?

Answer 10

Occupational Mobility

Geographical Mobility

Question 11

Define Occupational Mobility

Answer 11

The degree which the FOP can change its USE

Question 12

Define Geographical Mobility

Answer 12

The degree which the FOP can MOVE

Question 13

List if Land is Occupationally and Geographically Mobile, why?

Answer 13

OM - Yes

GM - Mostly immobile

Question 14

List if Labour is Occupationally and Geographically Mobile, why?

Answer 14

OM - Depends on several factors

GM - Depends on several factors

Question 15

List if Capital is Occupationally and Geographically Mobile, why?

Answer 15

OM - Depends on several factors

GM - Depends on type

Question 16

List if Enterprise is Occupationally and Geographically Mobile, why?

Answer 16

OM - Yes

GM - Yes