Observation

Most candidates attempted this question and performed well. However some candidates mentioned the factors of production without explanation as required in the question.
The expected responses to the question include:

  (a)        Reasons people still engage in hawking

         (i) People engage in hawking because of its low cost of operation;
         (ii) Some customers still prefer to patronize hawkers who bring goods to their door steps;
(iii)  Unemployment encourages people to remain in hawking;
(iv) The ease of set up also encourages people to hawk as there are no legal requirements;
(v) The small capital required to run the business also encourages people to hawk;
(vi)       It requires no formal training;
(vii)      There is high rate of turn

(b)        The factors of production
(i)         Land:  This includes all free gifts of nature. It includes, sea, soil, rivers,
vegetation and minerals. The reward for land is rent.  It is fixed in nature;
(ii)        Labour:  This refers to all human efforts that are directed towards the production of goods and services for which payments are made.  Its reward are wages/salaries/ commission. It is mobile and can be skilled or unskilled;
(iii)       Capital:  This includes all materials/wealth that is directed towards the production of other goods. it includes physical cash, machineries and equipment that can be acquired and accumulated.  Its reward is interest and it is mobile.
(iv)       Entrepreneur/Entrepreneurship/Enterprise: This refers to the owner of the business, who provides, organizes and coordinates the other factors of production.  The reward is profit.  He bears the risk of the business.