Economics 0455 · IGCSE · The factors of production

The factors of production — practice question

Several farmers set up a partnership. They purchase extra machinery, which they use jointly to produce cereals. What is one advantage of using more machinery?

  • Ait eliminates the need to train labour
  • Bit encourages more labour-intensive methods
  • Cit increases the productivity of each farmer
  • Dit reduces total capital costs of production

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