1.1 Various options are provided as posslble answers to the following questions. Choose the answor and write only the lotter ( \( A-D \) ) next to the question number. 1.1.1 Factors of production are: A Inputs into the production process. B woather, sociel, political conditions that aflect, production. C the phyalcal relationshlps between economic inputs and outputs. D the ownership of the factors of production is not important for househy 1.1.2 The remuneration or payment mada for the use of factors of production whil are limited in supply is ealled ... A economic ront. B rent. C commarcial rent. D intereal. 1.1.3 Resources are called - in the production procesa. A inputa B outputs intormediale goods final goods 1.1.4 The supply of tand is ... A. plastic D. Inalastic C. mobile D. mumiont
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1.1.1 A 1.1.2 B 1.1.3 A 1.1.4 D The factors of production are like the ingredients in a recipe. Just as you need flour, eggs, and sugar to bake a cake, you need land, labor, capital, and entrepreneurship to produce goods and services. Understanding these factors helps economists analyze how resources are allocated and how economies function. When it comes to the remuneration for limited resources, think of it like renting an apartment! If demand is high but availability is low, landlords can charge higher rents. Similarly, the concept of economic rent refers to the income earned by a factor of production when its supply is fixed, making it a key component in understanding economics.
