Microeconomics (4.1.1.3)

Question 1

How can economic resources be classified?

Answer 1

Factors of production

Question 2

List the factors of production

Answer 2

Land, labour, capital and enterprise

Question 3

Define factors of production

Answer 3

Inputs available to supply production of goods/services in an economy.

Question 4

State the factor income for land

Answer 4

Rental income to landowners

Question 5

State the factor income for labor

Answer 5

Wages and salaries from employment

Question 6

State the factor income for capital

Answer 6

Interests from savings and dividends from shares

Question 7

State the factor income for enterprise

Answer 7

Profits

Question 8

Define Factor income

Answer 8

Incomes that flow to each of the factors of production when they are brought into productive use.

Question 9

What types of capital are there?

Answer 9

Fixed capital and working capital

Question 10

Define fixed capital

Answer 10

Machinery, equipment, new technology, factories and other buildings. - Assets of the company

Question 11

Define working capital

Answer 11

Stocks of finished and semi-finished goods that will either be consumed or used to make consumer goods.

Question 12

State an advantage of more fixed capital

Answer 12

With labor in low demand from companies in especially rural areas, people are forced to migrate to the city to work, earning a higher wage, assuming an improvement in the standard of living.