O Levels Economics (2281)•2281/12/O/N/22

Explanation
Classifying airline resources into economic factors of production
Steps:
- Recall four factors: land (natural resources), labor (human effort), capital (tools/equipment), enterprise (organization/risk-taking).
- Identify airline needs: people as labor, equipment as capital.
- Evaluate choices for correct matching to a factor.
- Select option with accurate allocation.
Why A is correct:
- Capital is defined as financial or physical assets provided by owners for production, like airline owners' investments in equipment.
Why the others are wrong:
- B: Computer network is capital (man-made equipment), not land (natural resources).
- C: Pilots provide labor (skilled human work), not enterprise (business organization).
- D: Mixes capital (computers), labor (pilots), and enterprise without correct single allocation.
Final answer: A
Topic: The factors of production
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