Business Management II - Objective 1.02 Review

The equipment, ingredients, and employee labor at a restaurant are all

• inputs.

• objectives.

• productivity.

• mass production.

The amount and value of outputs produced from set amounts of resources are known as

• inputs.

• objectives.

• productivity.

• mass production.

Janine works for a gift-wrapping service. During a typical eight-hour work day, Janine wraps 52 gifts. What is her productivity rate?

• 17.3 gifts per hour

• 2.2 gifts per hour

• 7.0 gifts per hour

• 6.5 gifts per hour

One way the productivity of a business can be measured is by

• determining the amount of time needed to gather all necessary inputs.

• calculating the total monetary costs of all inputs used.

• dividing the dollar value of total sales by the costs of making those sales.

• dividing the number of products made by the cost of distributing those items.

Why is the productivity of service businesses measured differently than that of manufacturing businesses?

• Service businesses are less efficient than manufacturers.

• Manufacturers measure their productivity on a regular basis.

• Service businesses are concerned about the appropriateness of their products.

• Manufacturers produce intangible goods.

Why should productivity be measured?

• To see whether the business’s objectives are being met

• To locate new sources of inputs

• To determine the best ways to invest company profits

• To find new ways to meet customer needs

A positive effect that productivity has on a business is helping it

• determine the health of the nation’s economy.

• increase sales and profits.

• increase the standard of living.

• stop inflation.

How does increased business productivity benefit consumers?

• More goods and services become available, so prices go down.

• More goods and services become available, so prices go up.

• Costs of labor and prices increase, so inflation goes up.

• The gross domestic product goes down, so inflation goes up.

Gross domestic product per capita is a measure of

• everything a country produces within its borders.

• everything a country imports from foreign countries.

• everything a country exports.

• the average worker’s productivity.

Lack of standardization occurs when

• employees don’t understand how to use a machine or tool.

• tasks and processes are done differently every time.

• products are complex and difficult to assemble.

• team members do not get along with each other.