a) State four reasons people still engage in hawking.
b) Explain the four factors of production.
Explanation
(a) Reasons people still engage in hawking
- People engage in hawking because of its low cost of operation;
- Some customers still prefer to patronize hawkers who bring goods to their doorsteps;
- Unemployment encourages people to remain in hawking;
- The ease of set up also encourages people to hawk as there are no legal requirements;
- It requires no formal training;
- There is a high rate of turn
(b) The factors of production
(i) Land: This includes all gifts of nature. It includes sea, soil, rivers,
vegetation and minerals. The reward for land is rent. It is fixed in nature;
(ii) Labour: This refers to all human efforts that are directed towards the production of goods and services for which payments are made. Its reward is waged/salaries/ commission. It is mobile and can be skilled or unskilled;
(iii) Capital: This includes all materials/wealth that is directed towards the production of other goods. it includes physical cash, machinery and equipment that can be acquired and accumulated. Its reward is interesting and it is mobile.
(iv) Entrepreneur/Entrepreneurship/Enterprise: This refers to the owner of the business, who provides, organizes and coordinates the other factors of production. The reward is profit. He bears the risk of the business.