Define the term factors of production.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. [2] (a) Knowledge of the term that demonstrates a clear understanding of the term.
2. [1] (a) Knowledge of the term that demonstrates a partial understanding of the term.
3. [0] (a) No creditable response.
4. [2] (a) Factors of production are inputs available and needed to supply goods and services.
5. [2] (a) Four/five factors – land, labour, capital, entrepreneurship (enterprise) – knowledge often considered a factor.
6. [2] (a) The resources available and required to produce goods and services.
7. [1] (a) Resources such as land or labour or capital.
8. [1] (b) Knowledge of one relevant point is used to answer the question.
9. [2] (b) Developed application of one relevant point to a business context.
10. [1] (b) Limited application of one relevant point to a business context.
11. [0] (b) No creditable response.
12. [1] (b) One stage of the transformational process is the input stage.
13. [2] (b) Developed application of one stage is to take raw materials such as milk, transform into a different product such as butter or cheese, adding value with this new product.
14. [1] (b) Limited application of one stage of the transformation process is the process that educates a person who has few qualifications.