FAHAHEEL Al-WATANIEH INDIAN PRIVATE SCHOOL

International General Certificate of Secondary education

ECONOMICS REVISION WORKSHEET

IGCSE -1

UNIT1.1: THE NATURE OF ECONOMIC PROBLEM

UNIT1.2 : FACTORS OF PRODUCTION

MULTIPLE CHOICE QUESTIONS

1. Each of the factors of production earns an income.

What are the incomes for land and capital?

LAND CAPITAL

A. RENT INTEREST

B RENT PROFIT

C WAGES INTEREST

D WAGES PROFIT

2. What does an economist mean by capital?

a) Man- made resources used to produce other goods and services.

b) Money used to set up new businesses and expand existing businesses

c) Natural resources that will not be replaced

d) The ability to earn profits by combining resources to produce goods

3. What is the basic economic problem facing all economies?

a) Inequalities of income

b) Insufficient resources.

c) Low economic growth

d) Shortages of skilled labour

 4. What makes an industry capital intensive?
a) It employs many unskilled workers
b) It manufactures expensive products
c) It occupies sites on cheap land
d) It uses a large amount of equipment and a small labour force.

STRUCTURED QUESTIONS

1. Using machinery as an example, explain the mobility of capital as a factor of

production?

2. How can we make Labour more productive? Write down your ideas of how we
could increase the productivity of Labour.

3. Mr. Sam owns a Bakery. His factory employs 20 people and uses machinery to
produce the cake and biscuits (bakery items).
Describe how each of the four factors of production might be used in the
production of cake and biscuits.

4. Distinguish, using examples, between different factors of production.

5. Explain why it is impossible to solve the economic problem?
6. Below is a list of many of the scarce resource that are used to manufacture cars.
Draw three columns and label them natural resources, human resources and man-
made resources.
Telephone, oil, lorries, printing machines, factory buildings, calculators, lorry
drivers, bank clerks, advertising people, accountants, petroleum products,
rubber, steel

7. Differentiate between consumer durable and non-durable goods with examples.