CAPE Economics Unit 1 · 2012 · Paper 2 · Question 5(a)(ii)
Explain why the demand for a factor of production is considered a derived demand.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 5(a)(i)Identify TWO factors of production and their respective rewards.[2 marks]
- 5(b)(i)Outline the 'marginal productivity theory'.[2 marks]
- 5(b)(ii)Explain how the marginal productivity theory relates to the demand for labour.[3 marks]
- 5(c)(i)With the aid of a diagram, distinguish between 'transfer earnings' and 'economic rent'.[6 marks]
- 5(c)(ii)Assuming that the factor supply curve is vertical, state the values of economic rent and transfer earnings.[2 marks]
- 5(d)Discuss the effect of a monopsony on the labour market.[4 marks]
- 5(e)A computer has a two-year lifespan and yields a marginal revenue product (MRP) of…[4 marks]
More practice: the rest of this paper · more The Demand for and Supply of Factors questions · all CAPE Economics Unit 1 past papers