Practise 15 real Federal Board questions on Factors of Production from 2023 to 2026. See the answer and explanation as soon as you answer.
Factors of Production is one of the 8 main chapters in our Federal Board I.Com Economics question bank (11th and 12th class), and about 4% of its real questions come from it. Tayyari Karo has 15 real questions on this chapter from 2023 to 2026; 3 are multiple choice and marked instantly, and the rest are short and long questions with a model answer. By difficulty: 11 easy, 4 medium.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
Which factor of production has no pre-determined reward?
Answer: C. Entrepreneur
The entrepreneur's reward is profit, which is a residual, uncertain amount, unlike the fixed contractual rewards of land (rent), labour (wages) and capital (interest).
What is the total number of factors of production?
Answer: B. 4
The four factors of production are land, labour, capital, and entrepreneur/organization.
Sewing machine of a tailor is an example of which factor of production?
Answer: C. Capital
A sewing machine is a man-made tool used to produce further goods/services, so it is capital.
What is meant by productivity of land?
Productivity of land refers to the capacity of a piece of land to yield output (crops/produce) per unit of land, per unit of time, depending on factors such as soil fertility, climate, irrigation, and the farming techniques/inputs applied to it.
What is meant by horizontal mobility of labour?
Horizontal mobility of labour refers to the ability/willingness of a worker to move from one job to another of the same rank, grade, or status — either within the same occupation in a different place, or to a similar occupation requiring the same skill level, without a change in social or economic status.
What is meant by mobility of labour?
Mobility of labour refers to the ability/willingness of workers to move from one job, occupation, or place to another — it can be horizontal (moving between similar jobs/places) or vertical (moving up to a higher-grade job).
What is meant by efficiency of labour? Explain the factors which determine the efficiency of labour.
Efficiency of labour refers to the capacity of a worker to produce a greater quantity and better quality of output in a given time with the same amount of effort — essentially, output per unit of labour input.
Factors determining efficiency of labour:
(1) Education and training — skilled, educated workers are more productive.
(2) Health and physical fitness — healthy workers work harder and take fewer leaves.
(3) Wages and working conditions — fair wages and good working conditions motivate workers and raise morale.
(4) Availability of capital and technology — modern tools/machinery increase the output a worker can produce. …
The full model answer is in the app.
What is labour? Write down any three characteristics of labour.
Labour is the physical and mental effort of human beings, exerted in the production of goods and services, in exchange for a reward called wages.
Characteristics: (1) Labour is perishable — it cannot be stored; a day's unused labour is lost forever. (2) Labour is inseparable from the labourer — it cannot be sold apart from the person performing it. (3) Labour has weak bargaining power compared to capital/employers, since an individual labourer usually cannot hold out for long without income.
| Session | Questions |
|---|---|
| 2026 Annual | 1 |
| 2025 1st Annual | 3 |
| 2025 2nd Annual | 5 |
| 2024 Annual | 2 |
| 2023 Annual | 4 |
15 real Federal Board (FBISE) Economics questions on Factors of Production from 2023 to 2026, for 11th and 12th class. Each one shows the session it came from.
No. We could not find an official FBISE marking scheme for these papers, so the answers and explanations are written by Tayyari Karo for practice. Check anything important with your teacher or textbook.
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