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0455

Factors of Production

Basic Economic Problem · 4 question types

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0455 Topics

Scarcity, Choice & Opportunity Cost14%
Factors of Production6%
  1. What the Factors of Production Are
  2. The Four Factors in Detail
  3. The Four Rewards at a Glance
  4. All Four Factors in One Product
  5. Capital vs Money: the Most Common Slip
  6. Mobility of Factors of Production
  7. Why Labour Mobility Matters
  8. Changes in the Quantity and Quality of Factors
Production Possibility Curves10%

Frequency legend

High (≥14%)
Above avg (10 to 13%)
Average (<10%)

Exam Frequency Analysis

Past paper frequency (2018 to 2024)

This topic accounts for approximately 6% of your exam marks.

stable
Low
Stable6%

Four factors and their rewards appear occasionally; usually 2 to 4 marks when tested, not on every paper.

The factors of production are the inputs an economy uses to make every good and every service. There are exactly four of them on the IGCSE syllabus: land, labour, capital and enterprise. Every good or service draws on some combination of all four.

Two quick definitions used throughout this topic.

  • A good is a physical, tangible product (a phone, a loaf of bread, a chair).
  • A service is an action one person performs for another (a haircut, a doctor's appointment, a delivery).

Both goods and services are produced by combining the four factors.

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Why Opportunity Cost Matters

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The Four Factors in Detail