Intro Management Unit 5 Common Assessment Review

What is production?

• The selection of inputs for making outputs

• The process of assembling the factors of production

• The conversion process that results in time utility

• The creation of goods and services from economic resources

Which of the following is an example of production:

• Reading a new novel

• Purchasing food items

• Providing home security

• Answering your home telephone

The specific resources used in a company's production are called

• inputs

• consumer goods

• outputs

• conversion processes

In production, the purpose of the conversion process is to

• control the costs of production

• find markets for the firm's products

• turn inputs into products

• turn outdated products into new ones

What kind of conversion process is being used in an automated assembly line that produces soft drinks?

• Batch

• Labor-intensive

• Unit

• Capital-intensive

Which of the following outputs is considered industrial goods

• A freezer purchased by a restaurant owner

• A gallon of milk purchased by a family

• A textbook purchased by a college student

• A sewing machine purchased for home use

One of the benefits of production to consumers is that production

• makes use of automation

• provides a way to earn profits

• creates form utility

• provides a way to be competitive

Why is production important to businesses?

• It enables businesses to charge high prices

• It eliminates competition

• It creates goods and services businesses can sell

• It informs businesses about consumers' needs and wants

Efficient production enables businesses to

• charge higher prices than competitors

• obtain advance orders for goods and services

• make an accurate forecast of sales

• turn out the most products at the least cost

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