FOP

Question 1

What are Factors of production?

Answer 1

The factor of production refer to the resources required to produced a good or service, namely land, Labour, Capital and enterprise.

Question 2

FOP: Define Land?

Answer 2

All natural resources, including all agricultural and non-agricultural land, as well as everything that is under or above the land, such as minerals, oil reserves, underground water, forests, rivers and lakes.

Question 3

FOP: Define Labour

Answer 3

The Physical and Mental effort that people contribute to the production of goods or Services. The effort of a teacher, a construction worker, an economist, a doctor or a taxi driver all contributions to producing goods and services and all examples of Labour.

Question 4

FOP: Define Capital

Answer 4

Manmade factor of Production used to produce goods and services. Examples of Physical capital include machinery, tools, factories, building, road system, airport, electricity generators and telephone supply lines.

Question 5

FOP: Define Entrepreneurship

Answer 5

Special human skill, involving the ability to inviolate by developing new ways of doing things, to take business risks and to seek new opportunities for opening and running a business.
Entrepreneurship organises the other three factors of production and takes on the risks of sucess or failture of a business.

Question 6

Income: Reward for FOP: Land

Answer 6

Rent- Paid by tenants of a land resources

Question 7

Income: Reward for FOP: Capital

Answer 7

Wages & Salary - Wages are paid to workers on an hourly basis. Salaries staff are paid a fixed amount every month

Question 8

Income: Reward for FOP: Entrepreneurship

Answer 8

Profits: is what remain after all business carts are paid, including payment to all other FOP