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An entrepreneur takes a risk in combining land with the other two factors of production in setting up a business - Leaving Cert Economics - Question 3 - 2016
Question 3
An entrepreneur takes a risk in combining land with the other two factors of production in setting up a business. (i) State and explain the two factors of productio... show full transcript
Worked Solution & Example Answer:An entrepreneur takes a risk in combining land with the other two factors of production in setting up a business - Leaving Cert Economics - Question 3 - 2016
Step 1
State and explain the two factors of production, other than enterprise and land.
Answer
The two additional factors of production are:
Labour: This refers to the human effort involved in the creation of wealth, encompassing both physical and mental efforts of individuals.
Capital: This signifies man-made wealth, including machinery or investments used in a business, which facilitate production processes.
Step 2
Outline two benefits of entrepreneurs for the Irish economy.
Answer
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Job Creation: Entrepreneurs help create and maintain jobs, which reduces unemployment and contributes to the overall economy.
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Innovation: They drive innovation by developing new products and services, fostering competitive markets, and improving consumer choices.
Step 3
Step 4
Outline two aims of a national minimum wage.
Answer
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Increase Worker’s Standard of Living: By providing a minimum wage, it ensures workers have a basic income which can improve their quality of life.
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Encourage Workforce Participation: It may motivate individuals who are outside the workforce to become employed by offering them a livable wage.
Step 5
Outline two possible economic disadvantages of an increase in the national minimum wage.
Answer
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Increased Costs for Firms: Firms may face higher costs, potentially leading them to raise prices for goods and services to maintain profit margins.
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Reduced Employment: Higher wage rates may deter employers from hiring additional workers, leading to increased unemployment in sectors that are sensitive to labor costs.
Step 6
Outline two advantages to the local economy in Dublin of hosting major conferences such as the Web Summit.
Answer
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Increased Demand for Hospitality Services: Major conferences lead to higher occupancy rates in hotels and increased patronage at local restaurants, boosting the local economy.
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Enhanced Global Exposure: Hosting international events can enhance Dublin’s reputation as a favorable location for future conferences, potentially attracting more events and tourism.
Step 7
State two measures that either the Irish government or local government/authorities could take to attract major international conferences to Ireland.
Answer
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Hotel Accommodation: The government could provide incentives for hotel expansions or renovations to ensure ample accommodation is available for attendees.
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Transport Infrastructure: Investing in improved public transport links can facilitate easy access for conference attendees, making Dublin a more attractive location.