Greenstone Quarry extracts granite for use in road construction. It employs machine operators and sells crushed stone to building companies. The quarry is c...

Assessment: Commerce 4CM1 | Paper 1 Mock 01 | Written Paper 1 Subject: Commerce - 4CM1

Question 1 Report

Greenstone Quarry extracts granite for use in road construction. It employs machine operators and sells crushed stone to building companies. The quarry is considering opening a new area of land because demand for these goods has increased.

(a) State two examples of capital used in production at the quarry. [2]
(b) Identify the sector of industry in which Greenstone Quarry operates. [2]
(c) Give two reasons why the quarry may need insurance. [2]
(d) Explain two possible effects on the local community if the quarry opens the new area. [4]

Answer Details

(a) Two examples of capital are an excavator [1] and a crushing machine [1]. Trucks, drilling equipment and conveyors are also capital because they are man-made equipment used in production.

(b) Greenstone Quarry is in the primary sector [1] because it extracts granite, a natural raw material, from the land [1].

(c) Insurance may be needed because machinery could be damaged [1] and workers could be injured [1]. Vehicle accidents and claims for nearby-property damage are also valid.

(d) Opening the new area could create jobs, increasing local incomes and spending in local businesses [2]. However, more lorry traffic could cause noise, congestion or road damage [2]. Dust and noise affecting residents, with possible effects on quality of life or property values, are also valid explained effects.

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