Factors of production — Paper 1 · IGCSE Economics (9-1) 0987

2 What is the function of the factors of production in an economy? A to make goods and services to fulfil wants and needs B to provide an even distribution of income C to provide tax income for the government D to reduce the existence of external costs

1 marks

Answer: A

This question in 0987/11 May/June 2020

1 In 2016, 20 billion barrels of oil and 1.6 billion barrels of natural gas were discovered in Texas, US. Which factor of production has increased in the US due to this discovery? A capital B enterprise C labour D land

1 marks

Answer: D

This question in 0987/12 May/June 2020

2 Which combination of a factor of production and its factor income is not correct? factor of factor income production A capital interest B enterprise profit C labour dividends D land rent

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2020

1 Which statement about the factors of production is correct? A Capital is a financial resource and includes savings in banks. B Enterprise is limited in supply and includes office workers. C Labour is a human resource and includes pensioners and children. D Land is a natural resource and includes trees and fish.

1 marks

Answer: D

This question in 0987/11 May/June 2021

2 A multinational company (MNC) wishes to invest in a low-income country to expand its palm oil production. What is most likely to make this investment possible? A high cost of clearing forests to increase land for plantations B increased demand for palm oil C shortages of labour in the rural economy D the removal of subsidies for palm oil production

1 marks

Answer: B

This question in 0987/12 May/June 2021

2 What could cause an increase in demand for a factor of production? A decrease in the efficiency of the factor of production B decrease in the price of an alternative factor of production C increase in the demand for the good or service produced D increase in the price of the factor of production

1 marks

Answer: C

This question in 0987/11 May/June 2022

19 Which government action will not add directly to the quantity or quality of human resources? A improvement in health facilities B investment in education and training C provision of better food and nutrition D reclamation of land from the sea

1 marks

Answer: D

This question in 0987/11 May/June 2022

12 Germany is considered a capital-intensive economy while Indonesia is considered a labour-intensive economy. What does this mean about the economies of Germany and Indonesia? A Capital is relatively cheaper than labour in Germany while labour is relatively cheaper than capital in Indonesia. B Germany has many primary sector workers while Indonesia has many tertiary sector workers. C Indonesia has a higher growth in its population size than Germany. D Relatively more low-cost labour is available in Germany while capital is more efficient than labour in Indonesia.

1 marks

Answer: A

This question in 0987/12 May/June 2022

2 An airline needs people and equipment. These can be divided into factors of production. What is allocated to its correct factor of production? people or equipment factor of production A aircraft capital B airline owners labour C computer network land D pilots enterprise

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2022

3 What is most likely to increase enterprise as a factor of production in an economy? A a decrease in government spending on education B a decrease in regulation on firms C an increase in emigration D an increase in taxation on firms

1 marks

Answer: B

This question in 0987/11 May/June 2023

3 What is capital? A the ability to organise the factors of production B the energy used in production C the factory used in production D the money invested in a firm

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2023

2 Sonia owns a takeaway food delivery service. She decides to expand the firm, buying more vans and hiring additional drivers. Which factors of production were changed? A capital and labour B capital and land C enterprise and capital D labour and land

1 marks

Answer: A

This question in 0987/11 May/June 2025

1 A university rejects 2000 qualified applicants who wish to study there. Which factor of production could have caused the university to make this decision? A infinite quantity of capital B scarcity of labour C surplus of land D unlimited supply of enterprise

1 marks

Answer: B

This question in 0987/12 May/June 2025