What is production?

• The creation of goods and services from economic resources

• The conversion process that results in time utility

• The process of assembling the factors of production

• The selection of inputs for making outputs

Which of the following is an example of production:

• Providing home security

• Reading a new novel

• Purchasing food items

• Answering your home telephone

In production, the purpose of the conversion process is to

• turn inputs into products.

• find markets for the firm’s products.

• control the costs of production.

• turn outdated products into new ones.

One of the benefits of production to consumers is that production

• creates form utility.

• provides a way to earn profits.

• makes use of automation.

• provides a way to be competitive.

Why is production important to businesses?

• It creates goods and services businesses can sell.

• It eliminates competition.

• It enables businesses to charge high prices.

• It informs businesses about consumers’ needs and wants.

Which of the following is a true statement about production activities:

• They vary depending on the product being created.

• Most are considered difficult tasks.

• They are not necessary for the success of the business.

• They rely solely on capital resources.

Employees who are involved in production scheduling are responsible for

• estimating how long each step in production will take.

• establishing the path inputs take through production.

• issuing orders for production activities to begin.

• obtaining the resources needed in production.

Why do many businesses follow up after production to ensure that products meet standards set by outside organizations?

• To remain competitive

• To create dispatches

• To determine raises for production workers

• To estimate future sales