Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

(a)[8]

Explain the role that the enterprise factor of production plays in a free market economy, then compare it with the roles of the other factors in the production process.

(b)[12]

Explain the key differences between centrally planned and mixed economies, and discuss whether enterprise is a factor of production that is required in a centrally planned economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “For knowledge and understanding of enterprise’s role, including both parts of the function (the enterprise factor accepts the risk of production and organises the other factors).” …

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