CAIE A-Level Economics 1.3.1 Factors of Production

CAIE A-Level Economics 1.3.1 Factors of Production
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise identifying land, labour, capital and enterprise in production scenarios and separating produced capital goods from finance, natural resources and entrepreneurial…

How this is tested

  • classify natural resources as land, human effort as labour and produced means of production as capital
  • exclude loans, shares and other finance when the question asks for the productive factor capital
  • analyse how automation or new technology changes the relative use and productivity of factors

Question 3

[Maximum number: 1]

A wine producer and bottler wanted to expand its production significantly. To finance the expansion it offered investors discounts on restaurant meals if they bought 2000 shares in the company.

Which factors of production are most likely to be involved in this expansion?

A

labour, land, capital and enterprise

B

labour, land and capital only

C

enterprise and land only

D

enterprise only