Using an example, explain the term ‘factors of production’. (5 Marks)
Factors of production is an economic term that sets out the input that are used the prouction of goods and services to be sold on a market for profit. These factors of production are land, labor, capital and enterprise. An example of a ‘capital’ factor of production could be a machine within a factory this is used in the production of a good, for example the production of cars.
BP
Related Economics A Level answers
All answers ▸What effects aggregate demand and how would it effect the price level of the economy?
A product with perfectly elastic supply has sales of 100 units per week at a price of £2 per unit. Price elasticity of demand is(-)1 .5 over the relevant range. The government imposes a tax 20%. What will be the government’s weekly tax revenue?
Assess the extent to which a depreciation of the Pound will positively effect economic performance within the Uk.
On a Production Possibility Frontier diagram, indicate a point where resources are efficiently allocated (label X) and an inefficient one (labelled Y). Explain why X is efficient, why Y is inefficient and how output could be increased from both.