Question 1
- A diagram on production was shown with spaces lettered A to P and candidates were asked to complete the diagram.
- List four factors of production and state two characteristics of each.
- Explain to him five benefits of using computers in the conduct of his business.
Observation
Most of the candidates who attempted this question performed well. They were able to identify the letters and state the characteristics of the factors of production.
The expected responses to the question include:
(b) The factors of production are land, labour, capital and entrepreneur.
Characteristics of the factors of production
i . Land
• It is a free gift of nature.
• It is immobile i.e. fixed in nature.
• It is limited in supply.
• It includes the earth surface, waters, forests and mineral resources.
• Its reward is rent.
ii . Labour
• It is both physical and mental effort of man directed towards production.
• It is variable in supply.
• It is mobile in nature.
• Its quality can be improved by education and training.
• The reward for labour is wages.
iii . Capital
• It is a man-made factor of production.
• It constitutes wealth.
• It can change its form overtime.
• It depreciates with passage of time.
• Its reward is interest.
iv . Entrepreneur
• He coordinates all other factors.
• He is the risk bearer.
• He takes business decisions.
• He provides the needed capital.
• His reward is profit.