Factors of production
1.3What the syllabus asks of you
- nature and definition of factors of production: land, labour, capital and enterprise
- difference between human capital and physical capital
- rewards to the factors of production
- division of labour and specialisation
- role of the entrepreneur in contemporary economies: risk and organisation of the other factors of production
Drill this topic
Every question on Factors of production, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
32 questions
1May / June 2026 · Paper 14 · Q3Show mark scheme →
Ainterest
Brent
Ctax
Dwages
Mark scheme
2Oct / Nov 2025 · Paper 13 · Q2Show mark scheme →
AA process is split into a series of individual tasks.
BSome workers work part-time and others work full-time.
CThe same amount of output per hour is produced by each worker.
DWages are divided equally between workers.
Mark scheme
3Oct / Nov 2025 · Paper 14 · Q2Show mark scheme →
Acapital: interest, enterprise: profit, labour: rent, land: wages
Bcapital: interest, enterprise: profit, labour: wages, land: rent
Ccapital: profit, enterprise: interest, labour: wages, land: rent
Dcapital: rent, enterprise: wages, labour: interest, land: profit
Mark scheme
4May / June 2025 · Paper 11 · Q4Show mark scheme →
Ahigh-income countries: availability of specialists in research and development; low-income countries: lower costs of production
Bhigh-income countries: scarce human resources; low-income countries: over-supply of unskilled labour
Chigh-income countries: many people tended to avoid the disease; low-income countries: many people tended to catch the disease
Dhigh-income countries: no government control over resource allocation; low-income countries: strict government control over resource allocation
Mark scheme
5May / June 2025 · Paper 12 · Q4Show mark scheme →
Ahuman capital decreases; physical capital decreases
Bhuman capital decreases; physical capital increases
Chuman capital increases; physical capital decreases
Dhuman capital increases; physical capital increases
Mark scheme
6May / June 2025 · Paper 13 · Q4Show mark scheme →
Aincrease in motivation of employees
Bincrease in imports from other countries
Cincrease in the number of employees
Dincrease in the level of output
Mark scheme
7Feb / March 2025 · Paper 12 · Q5Show mark scheme →
Ain a large market with stable demand
Bin a market where consumers prefer a handmade product over a product made using machines
Cin a market where consumers require a variety of goods
Din a small market where consumers require a custom-made product
Mark scheme
8Oct / Nov 2024 · Paper 12 · Q2Show mark scheme →
AAn increase in output per worker in the long run depends on an increase in pay.
BAn increase in output per worker requires more capital.
CSpecialisation means workers lose skills.
DWorkers get bored if they are repeating the same work.
Mark scheme
9Oct / Nov 2024 · Paper 12 · Q3Show mark scheme →
Alabour, land, capital and enterprise
Blabour, land and capital only
Centerprise and land only
Denterprise only
Mark scheme
10Oct / Nov 2024 · Paper 13 · Q3Show mark scheme →
Acapital – surpluses
Benterprise – dividends
Clabour – interest
Dland – rents
Mark scheme
11Oct / Nov 2024 · Paper 13 · Q4Show mark scheme →
Aan increase in labour force creativity
Ban increase in labour productivity
Can increase in workforce flexibility
Dan increase in worker satisfaction
Mark scheme
12May / June 2024 · Paper 11 · Q2Show mark scheme →
Acapital and enterprise / labour and land
Benterprise and labour / land and capital
Clabour and land / capital and enterprise
Dland and capital / enterprise and labour
Mark scheme
13May / June 2024 · Paper 11 · Q3Show mark scheme →
Afertilisers
Bfisheries
Cforests
Dcoal
Mark scheme
14May / June 2024 · Paper 13 · Q5Show mark scheme →
Afirms wishing for a greater level of self-sufficiency
Bfirms wishing to increase their flexibility in production
Cfirms wishing to raise their level of productivity
Dfirms wishing to reduce their level of risk
Mark scheme
15Oct / Nov 2023 · Paper 12 · Q2Show mark scheme →
Aattracting customers
Bbuying stock
Cmanaging staff
Dtaking risks
Mark scheme
16Oct / Nov 2023 · Paper 13 · Q1Show mark scheme →
Aaverage cost of production
Bjob satisfaction of workers
Crange of skills of each worker
Dworker productivity
Mark scheme
17May / June 2023 · Paper 11 · Q1Show mark scheme →
Acapital
Benterprise
Clabour
Dland
Mark scheme
18May / June 2023 · Paper 11 · Q4Show mark scheme →
Adecrease in motivation
Bdecrease in output
Cdecrease in productivity
Ddecrease in quality of the final product
Mark scheme
19May / June 2023 · Paper 12 · Q1Show mark scheme →
Acapital
Benterprise
Clabour
Dland
Mark scheme
20May / June 2023 · Paper 12 · Q4Show mark scheme →
Aa decrease in average costs
Ban increase in motivation
Can increase in productivity
Dan improvement in quality of the final product
Mark scheme
21May / June 2023 · Paper 13 · Q4Show mark scheme →
Ahigh interest rates, high profit tax, high consumer confidence, high unemployment
Bhigh interest rates, low profit tax, low consumer confidence, high unemployment
Clow interest rates, low profit tax, high consumer confidence, low unemployment
Dlow interest rates, low profit tax, low consumer confidence, low unemployment
Mark scheme
22Oct / Nov 2022 · Paper 13 · Q1Show mark scheme →
Acapital – operating a machine continuously at full capacity
Benterprise – providing risk management advice
Cland – increasing the use of fertilisers
Dlabour – making apprenticeships and training compulsory
Mark scheme
23Oct / Nov 2022 · Paper 13 · Q3Show mark scheme →
Alower output per worker: no; more repetitive tasks: no; lower costs: no
Blower output per worker: no; more repetitive tasks: yes; lower costs: yes
Clower output per worker: yes; more repetitive tasks: no; lower costs: no
Dlower output per worker: yes; more repetitive tasks: yes; lower costs: yes
Mark scheme
24Oct / Nov 2022 · Paper 33 · Q22Show mark scheme →
Aencouraging women to enter the workforce
Bincreasing automation
Craising the retirement age
Dreducing the division of labour
Mark scheme
25May / June 2022 · Paper 13 · Q4Show mark scheme →
Aenterprise investment
Bhuman capital
Cmechanisation
Dspecialisation
Mark scheme
26May / June 2022 · Paper 14 · Q4Show mark scheme →
ACapital has replaced all labour for maintaining gardens.
BGardening has become more labour-intensive.
CLand has become more productive.
DNew technology has been introduced.
Mark scheme
27Oct / Nov 2021 · Paper 11 · Q1Show mark scheme →
Aaeroplanes
Blanding slots
Cpilots
Dshares
Mark scheme
28Oct / Nov 2021 · Paper 11 · Q3Show mark scheme →
AIn Sweden, it is easier for male entrepreneurs to get training than finance.
BIt is always more difficult for male entrepreneurs to get finance than training.
CItaly provides less money for male entrepreneurs than Japan or Sweden.
DSweden has more male entrepreneurs than Italy or Japan.
Mark scheme
29Oct / Nov 2021 · Paper 12 · Q4Show mark scheme →
AThe factor capital includes shares and deposit accounts at banks.
BThe factor labour includes human-made resources.
CThe factor land includes forests and undiscovered copper.
DThe factor enterprise takes risks and is rewarded with interest.
Mark scheme
30May / June 2021 · Paper 11 · Q2Show mark scheme →
Ainterest
Bprofit
Crent
Dwage
Mark scheme
31May / June 2021 · Paper 13 · Q3Show mark scheme →
Aenterprise
Binterest
Cwages
Dprofit
Mark scheme
32May / June 2021 · Paper 13 · Q10Show mark scheme →
Athe $10m loan used to finance the project
Bthe land on which the bakery will be built
Cthe ovens required to bake the bread
Dthe soya used in the making of the bread
Mark scheme