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CSEC POB - Section 5 - Production

Total questions: 118

Worksheet time: 3590secs

Name
Class
Date
1.

Which of the following is a primary need?

a)

money

b)

transport

c)

land

d)

food

2.

Which of the following is not a factor of production?

a)

food

b)

land

c)

labour

d)

capital

3.

In a subsistence economy the main source of production is:

a)

exports

b)

manufacturing

c)

agriculture

d)

mining

4.

Which of the following is a diseconomy of scale?

a)

extensive advertising is practicable

b)

labour-saving machinery can be used

c)

more capital is available

d)

lines of communication can become complex

5.

Fixed capital includes:

a)

buildings

b)

stocks

c)

bank balance

d)

stationery

6.

The Law of Diminishing Returns states that with additions to labour:

a)

marginal output rises

b)

average output rises

c)

marginal output falls

d)

total output increases

7.

The labour force of a country is:

a)

all people below retirement age

b)

all persons who are employed or are available for work

c)

the total population

d)

all persons over the school leaving age

8.

Automation in industry can result in:

a)

increased need for tertiary services

b)

employment of a larger workforce

c)

a more skilled workforce

d)

increased production costs

9.

WHAT ARE THE 4 FACTORS OF PRODUCTION?

a)

Land, Capital, Needs & Wants

b)

Land, Labour, Capital, Entrepreneurship

c)

Water, Air, Food & Shelter

d)

Land, Capital, Good & Service

10.

WHAT IS LABOUR?

a)

work people do for pay to produce good and services

b)

actions people do for other people

c)

any physical object

d)

The money people get for inheritance

11.

_______________ IS KNOWN AS FACTOR THAT GIVES THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES

a)

Entrepreneurs

b)

Capital

c)

Labour

d)

Land

12.

_______________ IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES.

a)

Entrepreneurs

b)

Capital

c)

Labor

d)

Land

13.

Which of the factors of production is this?

a)

capital

b)

entrepreneur

c)

land

d)

labour

14.

Which one of the factors of production is this?

a)

capital

b)

entrepreneur

c)

land

d)

labour

15.

Which factor of production do these represent?

a)

capital

b)

entrepreneur

c)

land

d)

labour

16.

This factor involves money, equipment, and tools and any items to produce goods and services?

a)

capital

b)

entrepreneur

c)

land

d)

labour

17.
Any technology/machinery involved in the production process:
a)
Human Capital
b)
Physical Capital
c)
Investment Capital
d)
Enterprise Capital
18.
An individual's knowledge or skills that make production of a good/service more efficient
a)
Human Capital
b)
Physical Capital
c)
Investment Capital
d)
Enterprise Capital
19.
Each society must determine how to best use its_______
a)
People
b)
Land
c)
Natural Resources
d)
All of the above
20.
What are the three economic questions?
a)
What to produce? How to produce? For whom to produce?
b)
Who to produce? Why you produce? Like to produce?
c)
Why to produce? Tell who to produce? Things to produce?
21.

Land includes...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

the tools, equipment, and factories used in production of goods and services

c)

people with all their efforts and abilities

d)

individuals who start a new business or bring a product to market.

22.

Capital refers to...

a)

The "gifts of nature" or natural resources not created by human effort.

b)

people with all their efforts and abilities

c)

the tools, equipment, and factories used in production of goods and services

d)

individuals who start a new business or bring a product to market.

23.

Labour refers to...

a)

people with all their efforts and abilities

b)

individuals who start a new business or bring a product to market.

c)

the tools, equipment, and factories used in production of goods and services.

d)

The "gifts of nature" or natural resources not created by human effort.

24.

Production refers to the creation of goods and services.

a)

True

b)

False

25.

Wants are referred to as primary needs.

a)

True

b)

False

26.

Any activity connected with money earning and money-spending is called an economic activity.

a)

True

b)

False

c)

Maybe

27.

Physical goods is also known as INTANGIBLE GOODS.

a)

True

b)

False

c)

Maybe

28.

Services are activities provided by other people, who include doctors, lawn care workers, dentists, barbers, waiters, or online servers, a book, a digital video game or a digital movie

a)

True

b)

False

c)

Maybe

29.

There are four main methods of production.

a)

True

b)

False

c)

Maybe

30.

Domestic Level

At this level, goods are produced locally and not exchange or exported. Enough is produced to provide for the local market.

a)

True

b)

False

c)

Maybe

31.

Enough goods are produced with the intention of exporting to other country. This is called subsistence level.

a)

True

b)

False

c)

Maybe

32.

There are 5 methods of Production.

a)

True

b)

False

c)

Maybe

33.

....................... is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).

a)

Production.

b)

Labour.

c)

Land.

d)

Product.

34.

Making a large quantity of identical products

a)

Job

b)

Batch

c)

Flow

35.

Making individual products that are bespoke (fit each customer's needs)

a)

Job

b)

Batch

c)

Flow

36.

Making different varieties of identical products. The production process is broken into stages

a)

Job

b)

Batch

c)

Flow

37.

During production process inputs are converted into ______________.

a)

store

b)

machines

c)

raw materials

d)

outputs

38.

Stones are examples of ____________

a)

Finished products

b)

Goods

c)

Parts

d)

Raw materials

39.

Which of the following is NOT true with production process

a)

firms adding value to a product

b)

transforming raw materials into finished goods

c)

provision of a product or service

d)

providing only a product, not service

40.

Which of these is a service?

a)

beverage factory

b)

plumbing

c)

readymade dresses

d)

birthday cakes baked by a supermarket

41.

Which of the following is true for productivity?

a)

productivity is how products are made

b)

productivity is a measure of how many workers a business has

c)

productivity measures efficiency

d)

productivity measures effectiveness

42.

Which of these isn't a method of improving productivity?

a)

employing more staff

b)

providing pay incentives

c)

investing in up-to-date machinery

d)

training staff

43.

Which of the following statements is correct?

a)

the level of production is the total number of goods produced per worker

b)

productivity is the same as output in a given time period

c)

increasing production leads to increased productivity

d)

reducing productivity per worker will increase the number of workers

44.

One of the benefits of increasing productivity is:

a)

more workers will be employed

b)

total production will increase with the same number of workers

c)

average costs will stay the same

d)

fewer raw materials will be needed to produce the same level of output

45.

Which of the following is the best definition of 'an increase in efficiency'?

a)

higher output levels than last year

b)

lower total costs of production

c)

fewer workers employed but output level remains the same

d)

10% more workers employed and output also rises by 10%

46.

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

a)

physical capital.

b)

natural resources.

c)

human capital.

d)

technological knowledge.

47.

The possible disadvantage of growing a business may be

a)

Keeping control over decision making

b)

Larger potential profits

c)

Benefit from bulk buying discounts

d)

Security for the future of the business

48.

A merger is

a)

Two business agreeing to becoming one new business

b)

One business buying shares in another business

c)

One business taking over control of another business

d)

Two businesses co operating with each other.

49.

Advantages of a Merger might be...

(select THREE applicable answers)

a)

Better deals because of increased order size, bulk-buying discounts etc.

b)

Increased revenue and market share. Increased size of the combined company increases market power and ability to set higher prices

c)

To gain resources. If one company has resources (e.g. technology) that another one wants then a merger may be the most cost effective way to get access to those resources

d)

Slow growth so can be easily managed

50.

Disadvantages of Mergers could be..............

(Select THREE applicable answers)

a)

Clash of Cultures. All businesses have a slightly different culture and they may not work well together

b)

Mergers lead to bigger more efficient business

c)

Possible communication problems. As the business gets bigger, or if there are now too many employees

d)

Unreliable partners. A good merger will depend on trust between the businesses

51.

Which option best describes the term takeover?

a)

When two firms agree to join together to make one new business

b)

When a business finds a new market in another country

c)

When one business purchases another business

d)

When a business brings something new to the market

52.

Which best describes growth by expanding overseas? When a business:

a)

Finds new customers to buy its products in its domestic market

b)

Purchases another business in its home country

c)

Finds a new market in another country

d)

Invests heavily in research and development

53.

Nike buying a materials producer would be a form of...

a)

Vertical Forward Integration

b)

Horizontal Integration

c)

Vertical Backward Integration

d)

Diversification

54.

Horizontal integration is...

a)

When 2 companies in the same industry at the same stage of production join e.g. H&M and Zara

b)

When 2 companies in the same industry at different stages of production join e.g. H&M and a textiles factory

c)

When 2 companies in different industries join e.g. H&M and Costa

55.

IInternal growth is also known as ORGANIC growth. External growth is also called INORGANIC growth

A benefit of organic growth is

a)

It is quick

b)

The business can benefit from economies of scale (lower unit costs)

c)

Its more likely to fail than inorganic growth

56.

Developing new products is an example of

a)

market development

b)

mergers

c)

innovation

57.

Why might a business want to grow?

a)

More Profit

b)

Give employees more time off

c)

To improve the business image

d)

To sell less products

58.

Another reason why a business may want to grow is......

a)

To gain more competition

b)

To gain more customers

c)

To reduce the amount of stores

59.

Which of the following is NOT Internal/organic growth?

a)

Opening a new location

b)

Expanding through internet selling

c)

Merging with a similar company

d)

Offering franchises

60.

Vertical integration occurs when...

a)

firms in the same industry and at the same stage of the production process combine to form a larger business.

b)

when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.

c)

Involves take over or merger with another firm in an unrelated industry.

61.

BMW Motors Purchasing AUDI is an example of....

a)

Vertical integration

b)

Horizontal Integration

c)

Diversification

62.

Apple buying a company that creates microchips for phones and computers is an example of...

a)

Vertical integration

b)

Horizontal Integration

c)

Diversification

63.

McDonalds buying a cattle farm would be an example of...

a)

Vertical integration

b)

Horizontal integration

c)

Diversification

64.

The mining of minerals is called...

a)

drilling

b)

manufacturing

c)

servicing

d)

extracting

65.

If you take your car is broken and you take ii to the mechanic, , is it the secondary production sector involved?

a)

No, the mechanic is tertiary sector.

b)

Yes, it is secondary sector

66.

Name the activity and the prodcution sector

a)

Agriculture, secondary

b)

Fish Farming, secondary

c)

Agriculture, primary

d)

Fishing, primary

67.

Name the activity and the production sector

a)

Construction, primary

b)

Mining, secondary

c)

Extracting, tertiary

d)

Mining, primary

68.

Name the activity and production sector

a)

Farming, secondary

b)

Agriculture, primary

c)

Manufacturing, secondary

d)

Agriculture, secondary

69.

Name the activity and sector

a)

Sewing, primary

b)

Textile, primary

c)

Seamstress, primary

d)

Textile, secondary

70.

Name the activity and the production sector

a)

Construction, seconday

b)

Metallurgy, tertiary

c)

Metallurgy, primary

d)

Manufacturing, secondary

71.

Primary industry is also known as extractive industries

a)

True

b)

False

72.

Secondary industry is also known as _____________ industry

a)

manufacturing

b)

extractive

c)

mining

73.

Making soaps, carpets, sugar, etc is an example of _________ industry

a)

primary / extractive

b)

secondary / manufacturing

c)

tertiary

74.

Banking is an example of ____________ industry

a)

Primary / Extractive

b)

Secondary / Manufacturing

c)

Tertiary

75.

The industry that provides goods and not services is called tertiary industry

a)

True

b)

False

76.

The industry that includes the process of making goods from raw materials is called ____________

a)

Primary / extractive

b)

Secondary / manufacturing

c)

tertiary

77.

Mining comes under ___________ industry

a)

Primary / extractive

b)

Secondary / manufacturing

c)

tertiary

78.

What are levels of production?

a)

Primary Production

b)

Producing at the secondary level

c)

The amount of goods produced

79.

Producing only enough to meet the basic needs of the family is called?

a)

Domestic Production

b)

Subsistence Production

c)

Surplus Production

80.

This level of production allows a country to earn foreign exchange from the selling of its products.

a)

Subsistence Production

b)

Domestic Production

c)

Surplus/Export Production

81.

Selling goods at your local market is which level of production?

a)

Domestic Production

b)

Export/Surplus Production

c)

Subsistence Production

82.

If Jamaica is able to produce enough goods to satisfy the needs of persons in the country, Jamaica is practicing which level of production?

a)

Domestic Production

b)

Export Production

c)

Subsistence Production

83.

When China sells its products to other countries, this is which level of production?

a)

Subsistence Level of Production

b)

Domestic Level of Production

c)

Surplus/Export Level of Production

84.
Economies of scale are the reduction in costs of production achieved through increased output.
a)
True
b)
False
85.
Internal diseconomies of scale can be caused by
a)
Being unable to purchase stocks at a discounted price
b)
Management control being weakened with a larger workforce
c)
Traffic congestion causing delays to delivery of important stocks
d)
Advertising costs to a global audience
86.
If a firm increases its use of all factors of production but sees an increase in its average costs, this is a sign of
a)
Internal diseconomies of scale
b)
External returns to scale
c)
Diminishing marginal returns
d)
Decreasing returns to scale
87.
Internal economies of scale are those that
a)
Result from changes in production techniques
b)
Increase due to the growth of the industry as a whole
c)
Generate lower unit costs
d)
Reduce production costs in the short run
88.
External economies of scale can arise from
a)
Bulk purchases of raw materials, parts and components at favourable prices
b)
The introduction and use of advanced technology
c)
Specialised back-up services available in a particular region
d)
Lower interest rates, thus reducing the cost of borrowing to large companies
89.
If a firm doubles its use of inputs and finds that output increases by 50%, then it has experienced
a)
Growth
b)
Economies of scale
c)
Diseconomies of scale
d)
Evolution
90.
Technological economies of scale can only be feasible for a business if
a)
Banks lend money for the purchase of highly expensive technology
b)
Capital equipment is capable of producing mass units of a product in a short time
c)
There is an economic boom
d)
There is sufficient market demand for the product
91.

Which of the following is not a suitable method for measuring the size of a firms?

a)

The number of employees

b)

the size of the profit

c)

the amount of capital employed

d)

the size of turnover

92.

Which of the following is not an advantage of a small firm?

a)

Better communication

b)

flexibility

c)

economies of scale

d)

a personal service can be offered

93.

Which of the following is a disadvantage of small firms?

a)

economies of scale

b)

lack of finance

c)

too bureaucratic

d)

poor worker motivation

94.

which of the following is not an advantage of a large firm?

a)

market domination

b)

economies of scale

c)

better communication

d)

can undertake large scale contracts

95.

which of the following is an advantage of a small firms?

a)

can benefit from economies of scale

b)

ability to offer a personal service

c)

can access a greater range of finance options

d)

can attract the most qualified and experience staff

96.

Which of the following is not a disadvantage of a small firm?

a)

struggle to raise finance

b)

difficult to attract highly qualified and experienced staff

c)

can adapt more quickly to change

d)

cannot exploit economies of scale

97.

Which of the following factors encourage firms to grow?

a)

poor access to sources of finance

b)

desire to spread risk

c)

government regulation monitoring levels of competition in a market

d)

global economic instability

98.

Which of the following is not an advantage of a large firm

a)

can win large scale highly profitable contracts

b)

lower average costs due to size

c)

personal contact may be lacking impacting on employee motivation

d)

can dominate a market and have a high public profile which they can exploit

99.

A small business or manufacturing activity is called a cottage industry?

a)

True

b)

False

100.

A business or manufacturing activity carried out in people's homes is called...

a)

A Small Business

b)

A Medium Enterprise Business

c)

A Cottage Industry

d)

A Limited Company

101.

Which of the following is not one one of the key features of a cottage industry?

a)

Carried out in persons homes

b)

Typically use traditional or small scales technology

c)

Often use local raw material

d)

Usually hire employees from the community

102.

Which of the following is NOT a disadvantage of operating a cottage industry?

a)

Operators may lack marketing skills

b)

Raw materials may be hard to obtain

c)

Cottage industry usually offers low and attractive prices

d)

Long hours of work usually required

103.

Which of the following falls under cottage industry

a)

The Village Corner Store operated by Tanty Pam on the busy junction.

b)

The local barbershop operated in the community mall

c)

The large supermarket at the mall

d)

The carpenter operating at his home

104.

Which is NOT a characteristic of cottage industry?

a)

Based at home

b)

Labour- intensive production

c)

Use of readily available resources

d)

Highly trained employees

105.

Which of the following businesses may be BEST categorized as a cottage industry?

a)

Linda's Hear Dressing Salon

b)

Otis Mini Mart

c)

Vicky's Handicraft

d)

Eva Brewery Ltd.

106.

All of the following can be considered disadvantages of cottage industries EXCEPT:

a)

Flexibility in working hours

b)

High cost of production

c)

Lack of standardisation in output

d)

Dependence upon local raw materials

107.

A cottage industry can BEST be described as

a)

A business with one person responsible for all aspects

b)

A business that builds homes

c)

A business carrying out production at home

d)

A business catering to the needs of the local community

108.

A cottage industry business, most likely has ____________

a)

Unlimited Liability

b)

Limited Liability

c)

Large Labour Force

d)

Lots of Sophisticated Capital Equipment

109.

Linkage Industries are ______

a)

closely connected to each other

b)

part of the public sector

c)

capital intensive

d)

engaged in mass production

110.

Which of the following is a forward linkage?

a)

A farmer providing manure for other farmers

b)

A farmer buying fertiliser from garden store

c)

Oil manufacturer buying bottles from bottle manufacturer

d)

Bottle manufacturer buying petroleum from crude oil industry

111.

Forward linkage is where_______

a)

one industry provides raw materials for another

b)

one industry depends on another for their raw materials

c)

one industry sells their product to the public

d)

one industry buys their materials from a manufacturer

112.

An advantage of the linkage industry is _______

a)

It provides a guaranteed market for your product

b)

It provides a guaranteed source for your raw materials

c)

It is cheap and easy to set up

d)

It makes use of local resources

113.

An advantage of the linkage industry is _______

a)

It provides a guaranteed market for your product

b)

It provides a guaranteed source for your raw materials

c)

It is cheap and easy to set up

d)

It makes use of local resources

114.

Linkage industries benefit the economy by all EXCEPT_____

a)

providing employment

b)

allowing money to remain in the country

c)

passing down traditions from one generation to the next

115.

Which of the following is best suited as a forward linkage industry for Tamarind Balls?

a)

Tamarind from a farmer

b)

Tamarind tree from a garden store

c)

Tamarind sauce from a chef

d)

Local Produce Store at a hotel

116.

Jamaica has large amounts of bauxite. What can be produced from bauxite?

a)

aluminum

b)

chips

117.

The Caribbean Islands once had many tropical forests, but few timber resources are available today. What is timber?

a)

wood used for building

b)

water used for farming

118.

Bauxite is found in abundance in both Jamaica and __________.

a)

Guyana

b)

Trinidad and Tobago

c)

Barbados

d)

Grenada