Factors of Production is one of 10 topics in the Grade 11 Economics CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Which factor of production is remunerated with rent?
Land
Labour
Capital
Entrepreneurship
Answer: Land — Land refers to all natural resources used in production, and its owners earn rent as remuneration for its use.
Easy
2. In economics, "capital" specifically refers to:
Man-made goods used to produce other goods and services, such as machinery and tools
Money held in a bank account
Natural resources like land and minerals
The physical and mental effort of workers
Answer: Man-made goods used to produce other goods and services, such as machinery and tools — Unlike everyday language, where "capital" often means money, in economics capital specifically means the man-made goods -- machinery, tools, buildings, infrastructure -- used to produce other goods and services; money itself does not directly produce anything.
Medium
3. What is the term for the residual income earned by an entrepreneur, left over after land, labour and capital have been paid?
Answer: Profit — Profit is the entrepreneur's remuneration: the amount left over after paying rent, wages, and interest to the other three factors, which is why it is the most variable and uncertain type of income among the four.
