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A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2011 · Q11 Mark

What distinguishes capital from other factors of production?

ACapital exists only in capitalist market economies.
BCapital results from the operation of the other factors.
CThe rewards earned by the owners of capital are uncertain.
DUnlike labour or land, capital must be owned rather than hired or rented.

✓ Correct answer

B: Capital results from the operation of the other factors.

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About this question

Topic
Basic economic ideas and resource allocation, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2011 Paper 1 Variant 2, question 1.

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