Below is a list of production factors - NSC Agricultural Sciences - Question 3 - 2023 - Paper 2
Question 3
Below is a list of production factors.
A Capital
B Management
C Land
D Labour
3.1.1 In the list above, identify the production factor where each of the following is... show full transcript
Worked Solution & Example Answer:Below is a list of production factors - NSC Agricultural Sciences - Question 3 - 2023 - Paper 2
Step 1
Identify the production factor where each of the following is applicable:
(a) Used as collateral
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Answer
The production factor that is used as collateral is C Land. Land is often used in financial transactions as a security for loans.
Step 2
Identify the production factor where each of the following is applicable:
(b) Used to pay the salaries of farm workers
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Answer
The production factor used to pay the salaries of farm workers is A Capital. Capital refers to the financial resources that are available for use in the agricultural business.
Step 3
Identify the production factor where each of the following is applicable:
(c) The farmer
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Answer
The production factor represented by 'the farmer' is D Labour. The farmer provides manual labor and management input in the farming process.
Step 4
Justify the answer to QUESTION 3.1.1(a).
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Answer
Land is a tangible asset that has value and can be easily converted or transferred, which makes it suitable to be used as collateral for loans or financial agreements.
