Economics 2281 · O Level · The factors of production
The factors of production — practice question
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.
(a)[2]
Identify two factors of production used in gold mining.
(b)[4]
Explain two reasons why a government may impose a tariff on imported gold.
(c)[6]
Analyse the ways in which perfect competition differs from monopoly.
(d)[8]
Discuss whether or not an economy should mine and sell all of its gold now.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “miners / labour” …