Rosa runs a mobile pet-grooming business and employs groomers to carry out the grooming. She started the business with her own savings and makes all the decisions about how it is run. Last year, after the groomers had been paid and all the other costs of the business had been met, Rosa kept £8,400.
Explain why the groomers' pay and Rosa's £8,400 are rewards for different factors of production.
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.