Chapter 18 Production of Goods and Services

Which of the following is the best definition of ‘an increase inefficiency’?

• higher output levels than last year
• lower total costs of production
• fewer workers employed but output level remainsthe same
• 10% more workers employed and output also risesby 10%

You get your haircut

• Good

• Service

You buy your mother a flower from a flower shop

• Good

• Service

You take an airplane when you go on a trip

• Good

• Service

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

Which of the following statements is correct?

• the level of production is the total number of goods produced per worker

• productivity can be measured by output per worker in a given time period

• increasing production leads to increased productivity

• reducing productivity per worker will increase the number of workers

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