POB 4.03

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

•                                   a.  Batch  

                                                           

• b.  Labor-intensive           

• c.  Unit

                                 

•   d.  Capital-intensive

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

•        a.  inputs.    

•     b.  consumer goods.     

• c.  outputs.

• d.  conversion processes

Which of the following outputs is considered an industrial good?

• a. A freezer purchased by a restaurant owner

• b. A gallon of milk purchased by a family

• c. A textbook purchased by a college student

• d.  A sewing machine purchased for home use

Why is production important to businesses?

•        a.  It enables businesses to charge high prices.

•    b.  It eliminates competition.

                

• c.  It creates goods and services businesses can sell, keeping them in business.

•      d.  It informs businesses about consumers’ needs and wants.

              What is production?

• a. The selection of inputs for making outputs

           

         

             

•      b.  The process of assembling the factors of production

•         c.  The conversion process that results in time utility

•    d.  The creation of goods and services from economic resources