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The economic problem

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Question 37

An organic vineyard in West Sussex utilizes the following inputs to produce wine:

  1. 5 hectares of fertile clay-loam soil5\text{ hectares of fertile clay-loam soil}5 hectares of fertile clay-loam soil
  2. 12 seasonal hand-pickers paid hourly12\text{ seasonal hand-pickers paid hourly}12 seasonal hand-pickers paid hourly
  3. A fleet of temperature-controlled fermentation vats and tractors\text{A fleet of temperature-controlled fermentation vats and tractors}A fleet of temperature-controlled fermentation vats and tractors
  4. The founder’s strategic decision-making and bearing of business risk\text{The founder's strategic decision-making and bearing of business risk}The founder’s strategic decision-making and bearing of business risk

Which option correctly classifies these inputs into the four factors of production and lists their corresponding economic rewards in the order 1,2,3,41, 2, 3, 41,2,3,4?

A

1: Land (Rent), 2: Labour (Wages), 3: Capital (Profit), 4: Enterprise (Interest)

B

1: Land (Interest), 2: Labour (Wages), 3: Capital (Rent), 4: Enterprise (Profit)

C

1: Land (Rent), 2: Labour (Wages), 3: Capital (Interest), 4: Enterprise (Profit)

D

1: Capital (Rent), 2: Labour (Wages), 3: Land (Interest), 4: Enterprise (Profit)

Markscheme

The economic problem Questions

  1. A Level
  2. /Economics
  3. /The economic problem

53 exam-style questions on OCR A Level Economics The economic problem. Each one has a worked solution and a mark scheme showing where the marks go.

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