What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to factors of production. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on factors of production, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Money is capital. Incorrect. Money is finance. Capital is the productive asset purchased with finance.
- Capital means every valuable asset. A valuable painting held for enjoyment is not necessarily productive capital.
- Land means only farmland. Land includes all natural resources.
- Labour means only physical work. Labour includes mental and physical effort.
- A worker's skill is physical capital. Skill embodied in the worker is human capital.
- The entrepreneur is simply the manager. Management and enterprise can overlap, but entrepreneurship includes risk and uncertain strategic decision-making.
- Profit is guaranteed. Enterprise may receive profit or suffer loss.
- Division of labour always improves quality. It may improve consistency but may also create boredom, fragmented responsibility and quality problems.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Factors of Production revision notes.