This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
Briefly state and explain the five management functions in tourism and hospitality.

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Factors: Land, Labour, Capital, Entrepreneurship
Question 1 (4 marks): Factors of production in tourism and hospitality sector
Land: Natural resources such as beautiful landscapes, beaches, climate, and wildlife attractions.
Labour: Human resources including skilled staff like chefs, tour guides, and hotel managers.
Capital: Man-made resources like hotels, transport vehicles, and equipment.
Entrepreneurship: Risk-taking innovators who organize the other factors, e.g., hotel owners.
Question 2 (4 marks): Four measures of national income
\begin{align*} &1. Gross Domestic Product (GDP)\ &2. Gross National Product (GNP)\ &3. Net National Product (NNP)\ &4. National Income (NI at factor cost) \end{align*}
Question 3 (4 marks): Differences between fixed costs and variable costs
Fixed costs remain constant regardless of output level. Variable costs change with output level.
Examples of fixed costs: Rent, Insurance.
Examples of variable costs: Raw materials, Direct labour wages.
Question 4 (4 marks): Two examples of business contributions to taxes
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Paying corporate income tax on profits.
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Collecting and remitting Value Added Tax (VAT) or sales tax from customers.
Question 5/9 (5 marks): Five management functions in tourism and hospitality
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Planning: Setting objectives, e.g., forecasting tourist arrivals.
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Organising: Arranging resources, e.g., staffing hotels.
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Staffing: Recruiting and training employees like guides.
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Directing/Leading: Motivating staff to provide excellent service.
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Controlling: Monitoring performance, e.g., guest satisfaction surveys.
Question 6/10 (1 mark): What is management?
Management is the process of planning, organising, leading and controlling organisational resources to achieve goals efficiently.
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Question 1 (4 marks): Factors of production in tourism and hospitality sector Land: Natural resources such as beautiful landscapes, beaches, climate, and wildlife attractions.