0455
Factors of Production
Basic Economic Problem · 3 question types
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: , , and . 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.