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Answer all parts of this question: (A) List and explain the four factors of production - Leaving Cert Business - Question Question 1 - 2006
Question Question 1
Answer all parts of this question: (A) List and explain the four factors of production. (20 marks) (B) Outline the importance of the 'primary sector' to the Irish... show full transcript
Worked Solution & Example Answer:Answer all parts of this question: (A) List and explain the four factors of production - Leaving Cert Business - Question Question 1 - 2006
Step 1
List and explain the four factors of production.
Answer
The four factors of production are:
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Land: This refers to all natural resources that are used to produce goods and services. It includes not just the physical land but also natural resources such as minerals, water, and forests.
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Labour: This is the human effort that is used in the production of goods and services. This includes both physical and mental effort expended by workers.
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Capital: Capital consists of the assets that are created by human effort and are used in the production of goods and services. This includes machinery, buildings, and equipment.
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Enterprise: This is the ability of individuals to combine the other factors of production to create goods and services. It involves risk-taking and innovation in creating a business.
Step 2
Outline the importance of the 'primary sector' to the Irish economy.
Answer
The primary sector is crucial to the Irish economy for several reasons:
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Exporting e.g. agriculture: The primary sector, particularly agriculture, is responsible for significant exports, contributing to national income.
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Reduction in imports: By producing goods such as food and raw materials domestically, Ireland can reduce its reliance on imports, enhancing economic stability.
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Employment: The primary sector provides numerous jobs, especially in rural areas, supporting local economies and communities.
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Development of natural resources: Efficient use and management of natural resources are essential for sustainability and environmental preservation.
Step 3
Explain, using two examples, what is meant by the 'services sector'.
Answer
The 'services sector' refers to the part of the economy that provides services instead of tangible goods. Two examples include:
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Transport: This includes services that facilitate the movement of goods and people. Companies like bus services and logistics providers are essential for facilitating trade and mobility.
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Tourism: An important part of the services sector, tourism involves providing services to visitors. This includes accommodation, food services, and entertainment, significantly boosting economic activity.
Step 4
List two benefits of a growing 'services sector' for the Irish economy.
Answer
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Employment: A growing services sector creates a variety of job opportunities, helping to lower unemployment rates and stimulate economic growth.
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Tax revenue for the Government: As companies in the services sector prosper, they contribute more tax revenue, which can be used to fund public services and infrastructure.
Step 5
Name two state-owned enterprises which help business to set up in Ireland.
Answer
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Enterprise Ireland: This state agency supports the development of Irish enterprises and helps them to grow in international markets.
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Údarás na Gaeltachta: This organization promotes economic development and supports businesses in the Gaeltacht regions of Ireland.
Step 6
Outline two disadvantages of state-owned enterprises.
Answer
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Monopolies: State-owned enterprises can create monopolies in certain sectors, leading to less competition and potentially higher prices for consumers.
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Lack of efficiency: Often, state-owned enterprises may lack the competitive pressure to operate efficiently, which can result in wasted resources and a lower quality of service.