14 Questions
Which factor of production is rewarded with rent?
Land
Which of these is an example of unskilled labour?
Street cleaner
What type of labour includes the efforts of doctors and lawyers?
Skilled labour
Which factor of production is primarily associated with human effort in production?
Labour
What is the primary reward for labour?
Salaries and wages
Which natural resource is typically extracted from land?
Coal
Which of the following is NOT a factor of production?
Technology
Who provides the factor of production known as labour?
Individual workers
Which of the following correctly describes the reward for the factor of production termed as 'Labour'?
Salaries and wages
What distinguishes skilled labour from unskilled labour?
Level of training and expertise
Natural resources like tin, coal, and crude oil are categorized under which factor of production?
Land
Which of the following is NOT a characteristic of the factor of production known as 'Land'?
Can be enhanced through human effort
What is a common feature shared by all factors of production?
They contribute towards production activity
Which of the following best describes 'Capital' in terms of the factors of production?
Funds and machinery used in production
Study Notes
Factors of Production
- Production activities require certain factors to be available
- Factors of production are also referred to as agents of production or inputs needed to make production possible
The Four Factors of Production
-
Land: natural resources used in production, provided by nature and has economic value
- Examples: tin, coal, gold, crude oil
- Payment for land is known as rent
-
Labour: human effort, either physical or mental, used in production
- Two types: skilled and unskilled labour
- Examples of skilled labour: doctors, nurses, teachers, lawyers, engineers, pharmacists
- Examples of unskilled labour: labourers performing manual duties such as road mending and street cleaning
- Reward for labour is known as salaries and wages
- Capital: not explicitly defined in the text, but implied as one of the four factors of production
- Entrepreneur: not explicitly defined in the text, but implied as one of the four factors of production
Learn about the factors of production, their features, and importance in production activities. Identify the resources necessary for goods to be produced.
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