Firms and production
3.5What the syllabus asks of you
- Demand for factors of production: influences to include demand for the product, the price of different factors of production, their availability and their productivity
- Labour-intensive and capital-intensive production: reasons for adopting the different forms of production
- Labour-intensive and capital-intensive production: advantages and disadvantages of the different forms of production
- Production and productivity: the difference between production and productivity
- Production and productivity: influences on production and productivity
- Production and productivity: effects of changes in investment on productivity
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Chapter 3: Firms and production
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Every question on Firms and production, untimed, marked as you go.
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Choose the years and how many questions, then print it with the answers on separate pages.
26 questions
1May / June 2026 · Paper 11 · Q14Show mark scheme →
AIt can produce small amounts of specific products for different customers.
BIt has the ability to continuously produce to the same standard of product.
CIt is cheaper to set up than most labour-intensive forms of production.
DIt is quicker to respond to changes in consumer tastes and preferences.
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2May / June 2026 · Paper 12 · Q13Show mark scheme →
Acapital spending has fallen
Bthe workforce has become more skilled
Cthe level of employment has increased
Dmarkets have become less competitive
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3Oct / Nov 2025 · Paper 13 · Q14Show mark scheme →
A
B
C
D
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4May / June 2025 · Paper 11 · Q15Show mark scheme →
Ainterest rates
Bminimum wages
Cthe power of trade unions
Dthe productivity of capital
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5May / June 2025 · Paper 12 · Q12Show mark scheme →
Aa decrease in the number of customers in the restaurant
Ba decrease in the chefs' pay
Can increase in the quality of the food
Dan increase in training for the chefs
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6Oct / Nov 2024 · Paper 12 · Q14Show mark scheme →
Aexpensive capital equipment costs
Bgrants from foreign aid programmes
Csupplies of local low-cost labour
Da shortage of highly trained supervisors
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7May / June 2024 · Paper 11 · Q12Show mark scheme →
ALabour productivity has decreased and production has decreased.
BLabour productivity has decreased and production has increased.
CLabour productivity has increased and production has decreased.
DLabour productivity has increased and production has increased.
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8Oct / Nov 2023 · Paper 12 · Q26Show mark scheme →
AEach family will be able to produce enough to live on.
BProduction is unlikely to be capital intensive.
CProduction will be efficient.
DThere will be a high level of trade.
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9Oct / Nov 2022 · Paper 13 · Q14Show mark scheme →
ACustomer satisfaction is higher.
BProduction costs are higher.
CProduction is less flexible.
DQuality of customer service is worse.
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10May / June 2022 · Paper 11 · Q2Show mark scheme →
Adecrease in the efficiency of the factor of production
Bdecrease in the price of an alternative factor of production
Cincrease in the demand for the good or service produced
Dincrease in the price of the factor of production
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11May / June 2022 · Paper 11 · Q13Show mark scheme →
AThe costs of production will increase.
BThe demand for capital will increase.
CThe price of capital will fall.
DThe supply of capital will decrease.
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12May / June 2022 · Paper 12 · Q12Show mark scheme →
ACapital is relatively cheaper than labour in Germany while labour is relatively cheaper than capital in Indonesia.
BGermany has many primary sector workers while Indonesia has many tertiary sector workers.
CIndonesia has a higher growth in its population size than Germany.
DRelatively more low-cost labour is available in Germany while capital is more efficient than labour in Indonesia.
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13Oct / Nov 2021 · Paper 13 · Q9Show mark scheme →
A10 labour hours per day, 40 cakes per day
B40 labour hours per day, 640 cakes per day
C50 labour hours per day, 750 cakes per day
D100 labour hours per day, 500 cakes per day
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14Oct / Nov 2021 · Paper 13 · Q10Show mark scheme →
Aeach item can be individually made; average costs of production are low
Bkeeps unemployment down; fixed costs are high
Cworkers have pride in the product; machinery may break down
Dworkers have to work hard; there is a ready market for the product
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15May / June 2020 · Paper 11 · Q8Show mark scheme →
ACapital replaces labour immediately.
BCapital replaces labour in the long run.
CLabour replaces capital immediately.
DLabour replaces capital in the long run.
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16May / June 2020 · Paper 11 · Q14Show mark scheme →
Aan increase in capital investment
Ban increase in income tax rates
Can increase in the demand for the industry's product
Dan increase in the number of firms in the industry
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17May / June 2020 · Paper 12 · Q14Show mark scheme →
A10% more workers results in a 10% increase in tractors produced each week.
BOutput per worker increases from 3 tractors to 4 tractors per month.
CProduction increases as more workers are hired.
DStarting a night shift leads to an increase in production of 10 tractors a day.
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18May / June 2019 · Paper 12 · Q12Show mark scheme →
Athe market structure of the production process
Bthe output that the production process creates
Cthe resources on which the production relies
Dthe size of the firm that uses the production process
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19May / June 2018 · Paper 11 · Q23Show mark scheme →
AInflation has increased.
BProductivity has increased.
CProfit has increased.
DWorking population has increased.
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20May / June 2018 · Paper 11 · Q30Show mark scheme →
ABangladesh and Thailand produce the same amount of rice.
BJapan produces more than three times as much rice as Bangladesh.
CJapan produces the largest amount of rice per hectare.
DJapan produces the largest amount of rice per person employed.
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21May / June 2018 · Paper 12 · Q23Show mark scheme →
AInflation has increased.
BProductivity has increased.
CProfit has increased.
DWorking population has increased.
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22May / June 2018 · Paper 12 · Q30Show mark scheme →
ABangladesh and Thailand produce the same amount of rice.
BJapan produces more than three times as much rice as Bangladesh.
CJapan produces the largest amount of rice per hectare.
DJapan produces the largest amount of rice per person employed.
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23Oct / Nov 2017 · Paper 12 · Q9Show mark scheme →
AThe price of the product manufactured has increased.
BThe productivity of labour has increased.
CThe productivity of machinery has increased.
DThe wages of labour have increased.
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24May / June 2017 · Paper 11 · Q15Show mark scheme →
AIt is constant then falls.
BIt is constant then rises.
CIt rises then becomes constant.
DIt rises continuously.
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25Oct / Nov 2016 · Paper 12 · Q13Show mark scheme →
AAverage productivity of agricultural workers has increased.
BFarming equipment has become more efficient.
CPeople are eating less food for health reasons.
DSome agricultural land has been sold for housing.
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26Oct / Nov 2016 · Paper 13 · Q14Show mark scheme →
AIt fell by 20%.
BIt fell by 25%.
CIt increased by 20%.
DIt increased by 25%.
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