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Economics IGCSEPDF 10
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• Occupationally Mobile: The dock can be used for a new purpose. For example, a dock
originally used for importing oil could be converted to a dock for exporting finished manufactured
goods, or for leisure activities like docking cruise ships.
Q. Define the factor of production 'Enterprise' and state its reward.
Definition:
•
factors (Land, Labour, and Capital), and making key decisions in a business with the aim of
generating profit.
•
Enterprise is the factor of production that involves taking risks, organizing the other
Reward:
The reward for Enterprise is
Profit
Multiple Choice Questions (MCQs)
1. Which combination of a factor of production and its factor income is not correct?
A.Capital → Interest
B.Enterprise → Profit
C.Labour → Dividends
D.Land → Rent
Answer and Explanation:
C
• isthe correct answer. The factor income for Labour is
shareholders, a reward for investing capital (finance).
Wages
. Dividends are payments to
2.Whichstatementaboutfactorsofproductioniscorrect?
A.Capital is the amount of money borrowed from a bank.
B.Land includes commercially grown rice crops.
C.Profit is the reward for enterprise.
D.Labour is the output made by an employee.
Answer and Explanation:
C
isthe correct answer. Profit is the financial reward for enterprise (the risk-bearing and
decision-making function).
A is incorrect: Capital is man-made resources (e.g., machinery), not money itself.
B is incorrect: Commercially grown crops are the output of production or part of working
capital/raw materials, not the primary factor
(which refers to the natural resources)
D is incorrect: Labour is the human
into the production process.
Land
input/effort
3. What is most likely to increase the occupational mobility of labour?
A. Building more houses.
B. Increased spending on re-training schemes.
C. Increased total government spending.
D. Increasing the information on job availability.