Understanding Production Concepts

What is the difference between needs and wants?

• Wants are always more important than needs.

• Needs are luxuries; wants are necessities.

• Needs are essential for survival; wants are non-essential desires.

• Needs can be bought; wants cannot be purchased.

Which of the following is a need: food, luxury car, or smartphone?

• food

• designer handbag

• gaming console

• yacht

What are wants in the context of economics?

• Wants are basic needs for survival in economics.

• Wants are limited to physical goods only.

• Wants are mandatory expenses that everyone must incur.

• Wants are non-essential desires that enhance quality of life in economics.

How do needs influence consumer behavior?

• Needs only affect luxury purchases.

• Needs influence consumer behavior by driving the decision-making process for purchases.

• Consumer behavior is solely influenced by advertising.

• Needs have no impact on consumer behavior.

Identify one example of a good.

• laptop

• smartphone

• desktop computer

• tablet

Identify one example of a service.

• Car wash

• Haircut

• Grocery shopping

• Movie ticket

What are the two main types of production?

• Primary production and secondary production

• Agricultural and industrial production

• Tertiary production and quaternary production

• Manufacturing and distribution

How does mass production differ from custom production?

• Mass production is only used for food items, whereas custom production applies to all products.

• Mass production creates unique items for individual customers, while custom production makes identical products for the market.

• Mass production focuses on high-quality craftsmanship, while custom production is about efficiency.

• Mass production produces large quantities of standardized items, while custom production creates unique, tailored products.

What is the primary goal of production?

• To reduce production costs at all costs.

• To maximize profits regardless of consumer needs.

• To create goods and services that meet consumer demand.

• To create goods that are only affordable for wealthy consumers.

What is a tangible product?

• A tangible product is a service provided to customers.

• A tangible product is an abstract concept that cannot be physically touched.

• A tangible product is a physical item that can be touched and measured.

• A tangible product is a digital item that exists only online.