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Subjects · Leaving Cert Economics

Leaving Cert Economics: Factors of production

How often Factors of production comes up on the Economics papers, every year it was asked, and questions to try.

HL Asked on 3 of the last 5 Higher Level papers, most recently in 2025. most years

OL Asked on 5 of the last 5 Ordinary Level papers, most recently in 2025. banker

Factors of production, Higher Level(7 marks)

Quick ones on Factors of production.

(a)The payment (return) to the factor of production land is…
  1. Interest
  2. Rent
  3. Profit
(b)The total supply of land to an economy is…
  1. Rising steeply as rent rises
  2. Perfectly elastic
  3. Fixed (perfectly inelastic)
(c)A firm gives its existing workers more and better machines. This is…
  1. Capital deepening
  2. Capital depreciation
  3. Capital widening
Show the answers

(a) Rent

(b) Fixed (perfectly inelastic)

(c) Capital deepening

Your turn: Higher Level questions on Factors of production.

Higher Level

Asked on 3 of the last 5 Higher Level papers, most recently in 2025. most years

Every paper, year by year

YearWhere it came up
2025Q16
2024Q4
2023Not asked
2022Q11
2021Not asked

Links open the State Examinations Commission’s paper for that year.

More Factors of production questions

Factors of production, 3 marks

Interest rates fall. Why might firms invest more in capital?

  1. The MEC of every project falls as rates fall
  2. Machines become physically more productive at lower rates
  3. More projects now have an MEC above the interest rate
Show the answer

More projects now have an MEC above the interest rate

Firms invest when the expected return (MEC) exceeds the cost of borrowing. A lower rate makes more projects worthwhile, so investment rises.

Factors of production, 2 marks

Which is an example of capital as a factor of production?

  1. Fertile farmland
  2. A delivery van owned by a bakery
  3. Cash saved in a household bank account
Show the answer

A delivery van owned by a bakery

Capital is man-made goods used to produce other goods and services: machines, vehicles, buildings. Money itself is not capital, and land is a separate factor.

Ordinary Level

Asked on 5 of the last 5 Ordinary Level papers, most recently in 2025. banker

Every paper, year by year

YearWhere it came up
2025Q15
2024Q15
2023Q16
2022Q14
2021Q16

Links open the State Examinations Commission’s paper for that year.

More Factors of production questions

Factors of production, 2 marks

The four factors of production are?

  1. Land, money, shares and wages
  2. Labour, rent, interest and profit
  3. Land, labour, capital and enterprise
Show the answer

Land, labour, capital and enterprise

Land is all natural resources, labour is human effort, capital is man-made goods used in production, and enterprise organises the others and takes the risk.

Factors of production, 2 marks

The payment to the factor enterprise is?

  1. Interest
  2. Profit
  3. Rent
Show the answer

Profit

Each factor earns a reward: land earns rent, labour earns wages, capital earns interest and enterprise earns profit for taking the risk.

Factors of production, 2 marks

Which is an example of capital as a factor of production?

  1. A delivery van used by a business
  2. A farmer's field used to grow barley
  3. Oil under the sea bed off the coast
Show the answer

A delivery van used by a business

Capital is anything made by people and used to produce other goods, like machines, tools and vehicles. A field and oil under the sea bed are natural resources, so they are land.

Other Economics topics

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