CAPITAL AND INCOME FROM CAPITAL

1. The factor of production capital is created when...

Think again.

Capital is something that is created to be used in the production of goods and services. These include things such as machines, tools and buildings. When Mr Bee buys existing shares on the stock exchange, no capital goods are created. He is making a financial investment.

2. Which one of the following is not a factor of production?

3. If the government of South Africa invests R2 billion to exploit the gas reserves in the Karoo and builds hospitals, which two factors of production are directly implied?

Think again.

Think again.

You are right!

Think again.

4. Which one of the following combinations represents the earnings of Thandi, Geoff and Themba?

Thandi owns a building that she rents out to Patrick. Geoff owns agricultural land that he rents to Glynis, who uses it to produce tomatoes. Temba works as a clerk for an auditing firm.