4.1.4.1 Production and productivity NOTES

What is the primary function of production in economics?

• To consume goods and services.

• To convert inputs into outputs.

• To distribute products globally.

• To maximize employee satisfaction.

Which of the following is considered an input in the production process?

• Profits earned by the company.

• Products sold by the company.

• Labor used in manufacturing.

• Customer feedback.

What does productivity measure in the context of economics?

• The total output per unit of input.

• The financial gain from product sales.

• The number of products produced.

• The efficiency of marketing strategies.

What is labor productivity?

• The total hours worked by all employees.

• The output per unit of labor input.

• The number of employees in the workforce.

• The wages paid to labor.

Which factor of production is primarily associated with tools, machinery, and buildings?

• Entrepreneurship

• Land

• Labor

• Capital

How can a company increase its labor productivity?

• By increasing the number of working hours.

• By improving the skills and efficiency of its workforce.

• By increasing the number of employees.

• By reducing the salaries of workers.

What role does capital play in the production process?

• It provides the financial resources needed.

• It refers to the physical assets used in production.

• It is responsible for strategic decision-making.

• It represents the workforce.

Which of the following best describes the term "factors of production"?

• The economic policies that govern production.

• The resources needed to produce goods and services.

• The outcomes of the production process.

• The marketing strategies used to sell products.

What is the outcome of the production process?

• Employee satisfaction.

• Consumer feedback.

• Final output or products.

• Investment returns.

Which of the following is an example of improving productivity through technology?

• Increasing product prices.

• Expanding office space.

• Implementing automated machinery.

• Hiring more managers.