A-Level - The factors of production (FoP)

What are the factors of production?

• natural resources that are available for production

• another term for resources in an economy

• what are required in the future to produce goods and services

• the human resources used in the production of goods and services

The factor of production capital means:

• what is combined with land and labour to produce goods and services.

• the value of assets owned by a firm.

• money needed to set up a firm.

• money provided by shareholders to expand production in a firm.

Which of these is an example of land as a factor of production?

• an airline pilot

• an airfield

• an aeroplane

• aircraft fuel

Specialisation can only occur when:

• a price has been agreed to buy and sell a product.

• a firm has traditional methods of production.

• a firm is more efficient than all others in making a product.

• an entrepreneur sees a business opportunity.

Which of these is the best explanation of how an economist

describes an entrepreneur?

• someone who is lucky and makes a lot of money

• someone who succeeds in some but not all business activities

• someone who is in charge of a firm

• someone who seeks out business opportunities and is willing to take risks