The nature of economics

Question 1

What are the 4 factors of production?

Answer 1

Land, labour, capital and enterprise

Question 2

What is land as a factor of production?

Answer 2

The natural factors used in production

Question 3

What is labour as a factor of production?

Answer 3

Human effort

Question 4

What is capital as a factor of production?

Answer 4

means of production such as machinery used to produce other goods

Question 5

What is enterprise as a factor of production?

Answer 5

investments made to the business

Question 6

What is the return on land as a factor of production?

Answer 6

Rent

Question 7

What is the return on labour as a factor of production?

Answer 7

Income/wages

Question 8

What is the return on capital as a factor of production?

Answer 8

Interest

Question 9

What is the return on enterprise as a factor of production?

Answer 9

Profits

Question 10

What is the distribution of goods and services based on?

Answer 10

Demand and price

Question 11

A person’s income is largely determines by the resources they ___ and which of those resources they ___ to the market.

Answer 11

possess, sell