A phone repair shop in Leeds pays its manager a fixed monthly salary to draw up staff rotas and order parts. The shop's owner put £15,000 of his own savings into opening it, hired the manager and two repair technicians, and keeps whatever is left from repair income once all costs are paid. The manager receives the same salary however many repairs are carried out.
Which statement about the factors of production in this phone repair shop is correct?
The owner supplies enterprise because he bears the risk of the shop failing
The owner supplies capital because he put his own savings into the shop
The technicians supply enterprise because the shop's income depends on their repairs
The manager supplies enterprise because she draws up the rotas and orders the parts
81 exam-style questions on AQA GCSE Economics 1.1 Economic foundations, covering 1.1.1a Needs and wants, 1.1.1b The central purpose of economic activity, 1.1.1c Key economic decisions, 1.1.1d The main economic groups, 1.1.2a The nature of an economic resource, 1.1.2b The four factors of production, 1.1.3a The basic economic problem and making choices, and 1.1.3b Opportunity cost. Each one has a worked solution and a mark scheme showing where the marks go.