(a)[8]
Explain the ways in which capital goods help production in a modern economy and how capital is rewarded.
(b)[12]
Discuss whether enterprise is essential to the outward shift of the production possibility curve in a mixed economy.
Economics 9708 · AS & A Level · Factors of production
Factors of production — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding of the factor capital: a definition that includes human-made aids to production (tools, equipment, plant, machinery and factories) and its role in production (KU: up to 4 marks). Note: Do not award credit for answers that treat capital as money.” …
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