(a)[2]
Define the term enterprise.
(b)[4]
Explain how opportunity cost influences consumers’ decisions.
(c)[6]
Analyse why a firm might become more capital-intensive.
(d)[8]
Discuss whether inflation damages a country’s industries.
Economics 2281 · O Level · The factors of production
The factors of production — practice question
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.