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The allocation of resources

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Question 9

An independent logistics firm operates a fleet of delivery vans, employs delivery drivers, leases a physical plot of land for its distribution depot, and is run by an entrepreneur who took out a personal loan to set up the business.

Which of the following options correctly identifies a factor of production used by this firm, its specific example, and its corresponding factor reward?

A
Factor of ProductionExample from FirmFactor RewardCapitalDelivery vansInterest \begin{array}{c|c|c} \textbf{Factor of Production} & \textbf{Example from Firm} & \textbf{Factor Reward} \\ \hline \text{Capital} & \text{Delivery vans} & \text{Interest} \end{array} Factor of ProductionCapital​Example from FirmDelivery vans​Factor RewardInterest​​
B
Factor of ProductionExample from FirmFactor RewardLandPhysical plot of landProfit \begin{array}{c|c|c} \textbf{Factor of Production} & \textbf{Example from Firm} & \textbf{Factor Reward} \\ \hline \text{Land} & \text{Physical plot of land} & \text{Profit} \end{array} Factor of ProductionLand​Example from FirmPhysical plot of land​Factor RewardProfit​​
C
Factor of ProductionExample from FirmFactor RewardLabourDelivery driversRent \begin{array}{c|c|c} \textbf{Factor of Production} & \textbf{Example from Firm} & \textbf{Factor Reward} \\ \hline \text{Labour} & \text{Delivery drivers} & \text{Rent} \end{array} Factor of ProductionLabour​Example from FirmDelivery drivers​Factor RewardRent​​
D
Factor of ProductionExample from FirmFactor RewardEnterpriseEntrepreneurWages \begin{array}{c|c|c} \textbf{Factor of Production} & \textbf{Example from Firm} & \textbf{Factor Reward} \\ \hline \text{Enterprise} & \text{Entrepreneur} & \text{Wages} \end{array} Factor of ProductionEnterprise​Example from FirmEntrepreneur​Factor RewardWages​​
Markscheme

The allocation of resources Questions

  1. A Level
  2. /Economics
  3. /The allocation of resources

31 exam-style questions on OCR A Level Economics The allocation of resources. Each one has a worked solution and a mark scheme showing where the marks go.

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