(a)[2]
Define enterprise in simple terms.
(b)[4]
Explain how opportunity cost affects consumers' choices.
(c)[6]
Analyse why a firm may switch to more capital-intensive production.
(d)[8]
Discuss whether inflation harms a country's industries.
Economics 0455 · IGCSE · The factors of production
The factors of production — practice question
Consumers in Uruguay are consuming more processed food. Factors of production, including enterprise, have adjusted to this shift. Firms in the processed food industry have become more capital-intensive. All of Uruguay's industries were influenced by the rise in its inflation rate, from 6.2% in 2017 to 7.7% in 2018.