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An entrepreneur takes a risk in combining land with the other two factors of production in setting up a business - Leaving Cert Economics - Question 3 - 2016
Question 3
An entrepreneur takes a risk in combining land with the other two factors of production in setting up a business. (i) State and explain the two factors of productio... show full transcript
Worked Solution & Example Answer:An entrepreneur takes a risk in combining land with the other two factors of production in setting up a business - Leaving Cert Economics - Question 3 - 2016
Step 1
(i) State and explain the two factors of production, other than enterprise and land.
Answer
Factors of Production:
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Labour: This refers to the human effort required in the creation of goods and services. It includes both physical and mental effort. Skilled and unskilled workers all contribute to the production process.
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Capital: This denotes the man-made wealth such as machinery, tools, and equipment used in the production process. It also includes investment funds utilized to grow the business.
Step 2
(ii) Outline two benefits of entrepreneurs for the Irish economy.
Answer
Benefits of Entrepreneurs:
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Job Creation: Entrepreneurs create new businesses, which generate employment opportunities, thereby helping to reduce unemployment rates in the country.
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Economic Growth: By introducing innovative products and services, entrepreneurs stimulate economic activity and contribute to the overall economic growth, enhancing the country's Gross National Product (GNP).
Step 3
Step 4
(ii) Outline two aims of a national minimum wage.
Answer
Aims of a National Minimum Wage:
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Increase Worker’s Standard of Living: By implementing a minimum wage, workers have more disposable income, improving their living conditions and overall well-being.
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Encourage Workforce Participation: A higher minimum wage may incentivize unemployed individuals to join the workforce, thereby reducing unemployment.
Step 5
(iii) Outline two possible economic disadvantages of an increase in the national minimum wage.
Answer
Economic Disadvantages:
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Increased Costs for Firms: When the minimum wage rises, businesses may incur higher labor costs, leading to increased prices for goods and services to maintain profit margins.
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Reduced Employment Opportunities: Higher wages may discourage employers from hiring additional staff, resulting in reduced job opportunities in the market.
Step 6
(i) Outline two advantages to the local economy in Dublin of hosting major conferences such as the Web Summit.
Answer
Advantages of Hosting Conferences:
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Boost in Local Business: Major conferences lead to increased demand for local services such as hotels, restaurants, and transport, enhancing the overall local economy.
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Attracting International Attention: Hosting significant events like the Web Summit puts Dublin on the global map, potentially attracting more international events and investments.
Step 7
(ii) State two measures that either the Irish government or local government/authorities could take to attract major international conferences to Ireland.
Answer
Measures to Attract Conferences:
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Enhanced Infrastructure: Improving transportation and accommodation facilities can make Dublin more appealing as a conference destination.
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Marketing Campaigns: Developing targeted promotions that highlight Dublin’s unique offerings and advantages for hosting conferences can entice event organizers to choose Ireland.