CAIE AS Economics - Paper 2

1.3 Factors of Production

Topical Past-Paper Questions

Real CAIE AS Economics Paper 2 questions gathered under this topic, so you can revise the way the exam actually asks.

CAIE AS Economics Paper 2 Topic 1.3

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About this topic

Factors of production are the resources used to produce goods and services: land, labour, capital and enterprise.

In past papers, this topic often asks you to:

Identify factors of production
Explain their role in production
Link each factor to its reward
Apply the idea to real examples

Before you begin

1Look for the factor named
2How it helps production
3The reward it receives
4An example from the question

Exam material

Past-paper questions

Past-paper question 9708/21/O/N/18 [8] marks

Explain how capital goods contribute to production in a modern economy and how capital is rewarded.

Open question

Past-paper question 9708/23/M/J/18 [8] marks

In 2015, it was reported that the global demand for chocolate was projected to increase but it was unlikely that the global supply of cocoa beans, required to produce chocolate, would increase.

State and explain two factors of production needed for the manufacture of chocolate. Explain the benefits of specialisation in the manufacture of chocolate.

Open question

Past-paper question 9708/22/F/M/20 [6] marks

Define enterprise and explain why it is important in combining the other factors of production.

Open question

Past-paper question 9708/24/O/N/18 [8] marks

Explain how human capital can contribute to economic growth and the rewards that are received by those who invest in human capital.

Open question

Past-paper question 9708/24/M/J/19 [8] marks

State and explain two factors of production used in the provision of education. Explain the benefits of training for workers.

Open question