Practise classifying land, labour, capital and enterprise and analysing how skills, technology, factor rewards, specialisation and entrepreneurial decisions affect production.
The nature of a typical car assembly plant has changed. The industry has fewer firms, operates on larger sites and has more automated machinery.
How is this change most likely to have affected the relative use of factors of production in the industry?
increased relative use
decreased relative use
capital and enterprise
labour and land
enterprise and labour
land and capital
labour and land
capital and enterprise
land and capital
enterprise and labour
D
Which term assumes the existence of 'qualities, knowledge and skills' that allow an individual to be more productive?
enterprise investment
human capital
mechanisation
specialisation
B
What do economists regard as the reward for taking risks and organising production?
enterprise
interest
wages
profit
D