A furniture maker owns a woodland where oak trees are growing. In its workshop it keeps a stock of oak planks ready for assembly, employs skilled carpenters and holds £30,000 in its bank account.
Which statement about the furniture maker's factors of production is correct?
The skilled carpenters are capital because their training improves their output
The £30,000 bank balance is capital because it can be used to buy machinery
The oak planks are capital because cutting the trees has turned them into a man-made good
The growing oak trees are capital because furniture can be made from them
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.