The factors of production

The following are four uses of factors of production. Which is most likely to need the greatest amount of the factor enterprise?

May/June 2015

At what point is one firm regarded as more capital-intensive than another firm?

May/June 2015

A rise in the number of manufacturing robots in the car manufacturing industry indicates an increase in the amount of which factor of production?

May/June 2016

Which one is not a factor of production?

May/June 2017

Which item would an economist categorise as the factor of production called land?

May/June 2018

Which item would be regarded as the factor of production capital for an airline?

May/June 2018

Which item would an economist consider to be an example of the factor of production capital?

May/June 2019

A government wants to raise agricultural output. It supplies farmers with the equipment needed to irrigate their fields. Which factors of production are contributed by the farmers?

May/June 2019

What is the key distinction between capital-intensive production and labour-intensive production?

May/June 2019

Which statement concerning the factors of production is correct?

May/June 2021

Consumers in Uruguay are consuming more processed foods. Factors of production, including enterprise, have adjusted to this shift. Businesses in the processed food industry have become more capital-intensive. Every industry in Uruguay was affected when the inflation rate rose from 6.2% in 2017 to 7.7% in 2018.

May/June 2021

Which government policy would not directly raise the number or the quality of human resources?

May/June 2022

What might lead to a rise in demand for a factor of production?

May/June 2022

Germany is regarded as a capital-intensive economy, whereas Indonesia is regarded as a labour-intensive economy. What is the meaning of this for the economies of Germany and Indonesia?

May/June 2022

Since 2012, the United Nations has issued a World Happiness Index each year. Countries are ordered in this index using life expectancy, freedom, social support, trust, generosity and GDP per head. In 2019, New Zealand was placed 8th in the World Happiness Index. The governments of Bhutan and New Zealand now take account of several factors that affect how happy their populations are. More than half of Bhutan’s labour force works in agriculture, whereas in New Zealand most workers are employed in the tertiary sector. Conditions at work, hours worked, the nature of the job and pay differ across the primary and tertiary sectors. Productivity is greater in every sector in New Zealand than in Bhutan. One reason is that New Zealand has invested more in capital goods and education. New Zealand also records a higher GDP per head. GDP per head ($) can affect net migration (number of people), as illustrated for selected countries in 2017 in Fig. 1.1. In its 2019 budget, the New Zealand government stated that progress would be judged not by rises in GDP, but by improvements in the quality of people’s lives. To do this, it announced extra spending in several areas including mental health, child poverty and pollution. Some economists said this was the wrong approach. They argued that the most effective way for the government to raise living standards would be to cut income tax rates. Such a cut could alter government spending and the amount of goods that people purchase, including cars. Tax revenue in New Zealand rose in 2019, in part because corporation tax revenue increased. Even so, firms’ future profits were hard to forecast. This was because it was uncertain what would happen to GDP and to corporation tax rates.

May/June 2022

Which change is most likely to raise enterprise as a factor of production in an economy?

May/June 2023

Source text: Is there a future for Australian coal? Australia is one of the world’s major coal producers. Most coal is burned to generate electricity, and this releases carbon dioxide. In recent years, worldwide demand for coal has fallen as countries have tried to cut pollution. As a result, there has been a move towards, for example, gas, offshore wind and solar power. Coal is extracted in all six of Australia’s states, although most comes from Queensland and New South Wales. In Queensland, some firms are extremely large. They employ both low-paid, unskilled workers and highly paid specialist mining engineers, site managers and accountants. These firms also rely on the newest excavators, mining drills, crushing equipment, earth movers and drones to spot maintenance problems. Coal can be kept in storage to respond to changes in market conditions, but storage costs can be high. It may also take several years to build a new coal mine. Table 1.1 shows the output and consumption of the seven largest producers in 2020. Global coal output has declined in recent years as most countries have switched to renewable energy sources. Even so, there are some countries where coal output is expected to rise. For instance, Australia and India both have plans to open new coal mines. The Indonesian government places a maximum price on coal so that its power stations are encouraged to use it. Australia’s coal industry adds to the government’s tax revenue. However, Australia’s budget balance is also affected by other factors, including changes in tax rates and state support for some industries in the country.

May/June 2023

A firm decides to become more capital-intensive. Which of the following is least likely to have risen?

May/June 2025

Sonia runs a takeaway food delivery service. She chooses to grow the business by purchasing more vans and employing extra drivers. Which factors of production were altered?

May/June 2025

A university turns away 2000 applicants who are qualified and want to study there. Which factor of production might have led the university to make this decision?

May/June 2025

During recent years, the quantity of Latvia’s factors of production has altered. Since 2008, its capital has risen and its land has not altered much, but its labour force and its enterprise have fallen. Enterprise and conditions of supply may influence firms’ prices. In 2022, the Latvian Government raised the country’s national minimum wage (NMW). Even so, its NMW remained one of the lowest in the European Union.

May/June 2025

In a rural area of Southern Africa, women carried out the planting and hand-weeding of crops, whereas men controlled production and took the profits. Which combination of factors of production was at work?

Oct/Nov 2015

Governments frequently attempt to affect the supply of factors of production within their economies. Which factor is a government least likely to be able to raise the supply of?

Oct/Nov 2015

In developed economies, production has shifted from labour-intensive methods towards capital-intensive methods. Which category of activity is still labour-intensive?

Oct/Nov 2015

Every factor of production receives an income. Which option correctly identifies the income for labour and capital?

Oct/Nov 2016

Some agricultural co-operatives have moved away from labour-intensive methods of production to capital-intensive ones. What could be one reason for this shift?

Oct/Nov 2016

Which of the following is not a factor of production?

Oct/Nov 2016

Economists use the term factors of production. Which of the following is not a factor of production?

Oct/Nov 2017

Which change would cause a manufacturing company to substitute labour for machines in order to keep the most efficient mix of factors of production?

Oct/Nov 2017

In economics, what is meant by the factor of production called capital?

Oct/Nov 2017

Private multinational clothing companies run businesses in developing countries in order to lower their average production costs. Which characteristic of developing countries draws them for this reason?

Oct/Nov 2017

Which factor of production is missing from the list below? bananas, a factory, goats, a risk taking investor

Oct/Nov 2018

Which of the following is a correct example of a factor of production in the fishing industry?

Oct/Nov 2018

In 2016, the price of gold increased. This encouraged owners of gold mines to use more resources in order to raise the supply of gold. The degree of competition in gold production differs across the various gold-producing countries. Several countries, including India, place a tariff on imported gold.

Oct/Nov 2018

Which statement concerning factors of production is correct?

Oct/Nov 2019

Which increase is most likely to result in a rise in the output of an economy?

Oct/Nov 2019

Which pairing of a factor of production with its factor income is incorrect?

Oct/Nov 2020

What is the main function of an entrepreneur?

Oct/Nov 2020

Several countries, Morocco among them, collect water from fog. Water is used in the primary, secondary and tertiary sectors. Over recent years, Morocco has expanded the amount and improved the quality of its resources, and has shifted more of them into the tertiary sector. The amount, quality and composition of a country’s resources are affected by several influences, such as its birth rate. Morocco’s birth rate decreased from 19.9 in 2016 to 18.7 in 2018.

Oct/Nov 2021

An airline requires both people and equipment. These may be grouped into factors of production. Which item is matched with the correct factor of production?

Oct/Nov 2022

A firm offers a personal service to its customers. It prefers to stay labour-intensive instead of switching to production that is more capital-intensive. Which aspect of being labour-intensive would justify this decision?

Oct/Nov 2022

An airline requires people and equipment. These may be classified as factors of production. Which item is assigned to the correct factor of production?

Oct/Nov 2022

What does capital mean?

Oct/Nov 2023

Which factor is most likely to promote capital-intensive production methods in a low-income economy?

Oct/Nov 2024

The management of an airline chose to replace its aeroplanes with aircraft that were more technologically advanced. At the same time, the company retrained its pilots. Which factors of production have been improved by the airline?

Oct/Nov 2024