Question bank1.1 Main economic groups and factors of production

1.1 Main economic groups and factors of production

A recycling business separates mixed glass at a rented site. The same entrepreneur organises production under either method.

The weekly wage of each sorting worker rises from £400 to £500. Each sorting machine costs £1,500 per week to use, and this cost does not change.

Production method	Sorting workers	Sorting machines	Tonnes separated per week
Labour-intensive	12	2	90
Capital-intensive	5	6	120

Analyse how the wage rise is likely to affect the entrepreneur’s choice of factor combination. Use the data to support your answer.

[6]

A recycling business separates mixed glass at a rented site. The same entrepreneur organises production under either method.

The weekly wage of each sorting worker rises from £400 to £500. Each sorting machine costs £1,500 per week to use, and this cost does not change.

Production method	Sorting workers	Sorting machines	Tonnes separated per week
Labour-intensive	12	2	90
Capital-intensive	5	6	120

Analyse how the wage rise is likely to affect the entrepreneur’s choice of factor combination. Use the data to support your answer.

1.1 Main economic groups and factors of production Questions