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WorksheetsIGCSE Business Economies of Scale plus revision
Total questions: 50
Worksheet time: 33mins
Diseconomies of Scale result in a lower per unit production cost over the long run
True
False
A _____ is anywhere buyers and sellers meet to buy and sell goods and services.
Store
Workplace
Restaurant
Market
The difference between the revenue earned and the costs incurred by a business during a specific period of time is called _____.
Sales
Profit
Expenses
Costs
A company wishes to increase labour productivity. All other things being equal, this is most likely to be achieved if the company
employs more workers.
reduces the wages it pays its employees.
reduces current output.
invests in more capital equipment.
Diseconomies of scale might arise because
firms spend money on new technology which leads to lower average costs.
decision-making by management becomes more difficult in larger firms.
workers are more likely to be productively efficient in larger firms.
larger firms can buy in bulk.
Start up costs are...
the amount of money spent setting up a business
money spent on a regular basis to keep a business running
Fixed Costs + Variable Costs
costs which change with output
Variable costs are...
the amount of money spent setting up a business
money spent on a regular basis to keep a business running
Fixed Costs + Variable Costs
costs which change with output
Total costs are...
the amount of money spent setting up a business
money spent on a regular basis to keep a business running
Fixed Costs + Variable Costs
costs which change with output
Revenue is
price x output (sales)
price x costs
Fixed costs x variable costs
Price x breakeven
Sales price x quantity is the formula for which of the following?
Profit
Total costs
Revenue
Total variable costs
A break even diagram for Business Y is shown below. The line with a value of £50,000 at an output of 3,000 units is called:
Total revenue
Total costs
Fixed costs
Total variable costs
At zero output on a break even diagram, the total cost line will always start:
At zero on both axes
Where the variable cost line starts
Where the fixed cost line starts
Where the total revenue line starts
The table below gives information about Business A. Based on this information, Business A’s total fixed costs are:
£10,000
£30,000
£40,000
£70,000
Of the four factors of production, which of these are not a factor of production?
Land
Capital
Development
Labour
The term "economies of scale" refers to ...
the average costs of production decreasing as a firm expands
the average costs of production rising as a firm expands
the average costs of production remaining the same as a firm expands
the average costs of production at first decreasing, then increasing, as a firm expands
which of the following is a feature of a public corporation
It is owned by the board of directors
It is funded by the government
it aims to maximise profits
it is not accountable to anyone
An economic term that describes people who do one job using the resources they have.
Fair trade
commodity
specialization
infrastructure
A fast method of growth is a key advantage for which business structure?
Franchisor
Partnership
Franchisee
Social Enterprise
Which of the following has the highest position in the company?
Regional Manager
Directors
CEO
workers
Which does NOT tell about the advantage of having a short chain of command?
Communication is quicker
Top managers are less remote from the lower level of the hierarchy
Span of control will be wider
If people will have more people to manage it will encourage managers to delegate more.
Which describes "chain of command"?
it allows instructions to be passed down
it is the number of subordinates
refers to the levels of management and division of responsibilities
It is the enjoyment derived frin that feeling you have done a good job
It is another word which means non-financial motivators
salary
profit sharing
fringe benefits
appraisal
Which of the following does NOT belong to the "hygiene" factors of Herzberg's theory?
recognition
salary
work condition
relationship and supervisors
People who are part owners of a company are known as...
Stakeholders
Shareholders
Customers
People
A custom guitar shop will almost definitely need to use which method of production?
Job production
Batch production
Flow production
Process production
Which of these would most likely result in a *decrease* in average labor productivity?
Motivating employees
Hiring more employees
Training employees
Purchasing more machinery
Which of the following are not internal stakeholders?
Owners
Employees
Management
The environment
My salary is just enough for me to live on
Esteem
Physiological
Self-actualization
safety and security
Which is the third step of the pyramid?
Esteem
Love and belongingness
Self-actualization
What is the main disadvantage of setting up as a Sole Trader?
Costly
Takes a long time
Unlimited liability
Need to sign a contract
Which of the following statements about business plans is TRUE?
Business plans eliminate risk to lenders
Business plans reduce risk to lenders
Business plans increase risk to lenders
Business plans have no impact on risk to lenders
what is the most appropriate form of business for a multinational operator
Partnership
Public Corporation
Public Limited Company
Social Enterprise
which of the following businesses operate in secondary sector
Santander Bank
Qatar Airways
Ford Motor Company
McDonalds
Which situation will result in greater efficiency?
The same output is achieved with fewer inputs.
The same input is needed for fewer outputs.
Fewer inputs are needed to produce fewer outputs.
More inputs are needed to achieve the same output.
What are the 2 main aims of a business?
To make more money than the competition
Make a profit
To have popular goods or services
Satisfy particular needs and wants
