Chapter 22: The Nature of Operations

Which of the following is NOT true with production process

• firms adding value to a product

• transforming raw materials into finished goods

• provision of a product or service

• providing only a product, not service

Which of these is a service?

• jogging shoes

• plumbing

• readymade dress

• birthday cake

What does productivity mean?

• productivity is how products are made

• productivity is a measure of how many workers a business has

• productivity measures efficiency

• productivity measures effectiveness

Which of these isn't a method of improving productivity?

• employing more staff

• providing pay incentives

• investing in up-to-date machinery

• training staff

One of the benefits of increasing productivity is:

• more workers will be employed

• total production will increase with the same number of workers

• average costs will stay the same

• fewer raw materials will be needed to produce the same level of output

Labour productivity could be increased by all of the following except:

• using more technologically advanced machines

• increasing the amount of automation

• improved training of workers

• employing more workers to produce the same level of output

Which of the following is the best definition of 'an increase in efficiency'?

• higher output levels than last year

• lower total costs of production

• fewer workers employed but output level remains the same

• 10% more workers employed and output also rises by 10%

Which one of the following is NOT a factor of production?

• land

• table

• capital

• enterprise

What is the main difference between capital-intensive production and labour-intensive production?

• the market structure of the production process

• the output that the production process creates

• the resources on which the production relies

• the size of the firm that uses the production process

Producing a desired result without wasting time, energy, money, or other resources.​

• Efficiency

• Productivity

• Input

• Output