Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

The character of a typical car assembly plant has altered. There are now fewer firms in the industry, production takes place on bigger sites and more machinery is automated. How would this change be most likely to have influenced the relative use of factors of production in the industry?

  • Aincreased relative use: capital and enterprise; decreased relative use: labour and land
  • Bincreased relative use: enterprise and labour; decreased relative use: land and capital
  • Cincreased relative use: labour and land; decreased relative use: capital and enterprise
  • Dincreased relative use: land and capital; decreased relative use: enterprise and labour

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