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Worksheets

Production

Total questions: 91

Worksheet time: 2hrs 58mins

Name
Class
Date
1.

Which of the following is a key disadvantage of a sole trader business?

a)

Lack of personalized service

b)

Unlimited liability

c)

Quick access to large captial

d)

Easy transfer of ownership

2.

Which of the following is a characteristic of a cooperation?

a)

one owner, one vote

b)

Profit-sharing according arrangements in a partnership

c)

Equal voting rights regardless of investment

d)

Direct control by shareholders

3.

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.

4.

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.

5.

Labor 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.

6.

Entrepreneurs are...

a)

people with all their efforts and abilities

b)

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

c)

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

d)

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

7.
A herd of cattle is an example of ...
a)
Land
b)
Labor
c)
Entrepreneur
d)
Capital
8.
Forests are examples of...
a)
Land
b)
Labor
c)
Entrepreneurs
d)
Capital
9.
Your garbage man is an example of
a)
Land
b)
Labor
c)
Entrepreneurs
d)
Capital
10.

the sum of fixed and variable costs

a)

total revenue

b)

marginal revenue

c)

marginal costs

d)

total costs

11.

costs that business owners incur no matter how much they produce

a)

variable

b)

fixed

c)

total

d)

marginal

12.

costs that depend on the level of production output

a)

total

b)

fixed

c)

variable

d)

marginal

13.

the extra cost of producing one more unit

a)

variable costs

b)

total costs

c)

marginal revenue

d)

marginal cost

14.

Which of the following is a variable cost in the short run?

a)

rent of the factory

b)

wages paid to factory workers

c)

interest payments on borrowed financial capital

d)

salaries paid to upper management

15.
Variable Cost/Quantity = _______
a)
Marginal Variable Cost
b)
Average Fixed Cost
c)
Average Variable Cost
d)
Marginal Total Cost
16.
The average fixed cost of producing 3 units of output is
a)
$8
b)
$7.40
c)
$5.50
d)
$6
17.

It is a period of time in which the the quantity of at least one input is fixed and the quantities of the other inputs can be varied.

a)

Long run

b)

Short run

c)

Long term

d)

Short term

18.

The marginal cost of production from 3 to 4 labors is _________.

a)

2

b)

7

c)

4

d)

8

19.

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total cost?

a)

$25

b)

$225

c)

$375

d)

$750

20.
A firm is producing 100 units of output at a total cost of $400. The firm’s average variable cost is $3 per unit. What is the firm’s total fixed cost? 
a)
$100
b)
$1
c)
$300
d)
$50
21.
Assume that the fixed cost is $50. Based on the cost and output data in the table, what is the marginal cost when the firm increases its output from three to four units AND the average total cost of producing 4 units (respectively)? 
a)
MC=$35; ATC=$40
b)
MC=$35; ATC=$35
c)
MC=$25; ATC=$35
d)
MC=$25; ATC=$25
22.

Which curve is represented by A

a)

Marginal cost curve

b)

Average total cost curve

c)

Average fixed cost curve

d)

Average variable cost curve

23.

What are levels of production?

a)

Primary Production

b)

Producing at the secondary level

c)

The amount of goods produced

24.

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

a)

Domestic Production

b)

Subsistence Production

c)

Surplus Production

25.

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

26.

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

a)

Domestic Production

b)

Export/Surplus Production

c)

Subsistence Production

27.

This picture BEST shows which level of production?

a)

Domestic Level

b)

Subsistence Level

c)

Surplus/Export Level

28.

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

29.

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

30.

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

31.

Who was the Lowell factory system named for

a)

Francis Cabot Lowell

b)

Samuel Morse

c)

Benjamin Franklin

32.

Work from home

a)

Factory System

b)

Cottage Industry

33.

small scale

a)

Factory System

b)

Cottage Industry

34.

work in factory

a)

Factory System

b)

Cottage Industry

35.

mass production

a)

Factory system

b)

Cottage Industry

36.

Much Faster

a)

Factory System

b)

Cottage Industry

37.

by machine

a)

Factory System

b)

Cottage Industry

38.

Slow and inefficient

a)

Factory System

b)

Cottage Industry

39.

by hand

a)

Factory system

b)

Cottage Industry

40.

big cities

a)

Factory system

b)

Cottage Industry

41.

sold all over

a)

Factory system

b)

Cottage Industry

42.

small farms

a)

Factory System

b)

Cottage Industry

43.

sold only locally

a)

Factory system

b)

Cottage Industry

44.

before the Industrial Revolution

a)

Factory System

b)

Cottage Industry

45.

During and After the Industrial Revolution

a)

Factory System

b)

Cottage Industry

46.

Made in one central location

a)

Factory system

b)

Cottage Industry

47.

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

48.

Which of these is a service?

a)

jogging shoes

b)

plumbing

c)

readymade dress

d)

birthday cake

49.

What does productivity mean?

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

50.

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

51.

Which of the following statements is correct?

a)

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

b)

productivity can be measured by output per worker in a given time period

c)

increasing production leads to increased productivity

d)

reducing productivity per worker will increase the number of workers

52.

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

53.

Labour productivity could be increased by all of the following except:

a)

using more technologically advanced machines

b)

increasing the amount of automation

c)

improved training of workers

d)

employing more workers to produce the same level of output

54.

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%

55.

Which one of the following is NOT a factor of production?

a)

land

b)

table

c)

capital

d)

enterprise

56.

Continuous production of identical products, therefore giving scope for high levels of automation

a)

Job production

b)

Productivity

c)

Flow production

d)

Batch production

57.

Producing a limited number of identical products

a)

Flow production

b)

Batch production

c)

Productivity

d)

Job production

58.

A measure of efficiency, measured as output per person in a particular time period

a)

Productivity

b)

Automation

c)

Product quality

d)

Competitive advantage

59.

One-off production of a one-off item for a single customer

a)

Quality

b)

Competitive advantage

c)

Batch production

d)

Job production

60.

An increase in morale and motivation can lead to what?

a)

Reduction of costs

b)

Improvements in quality

c)

Increased productivity

d)

Decreased productivity

61.

A business makes 28,000 items a week and employs 35 staff.

Calculate the productivity per worker.

a)

1500 units/week

b)

35 units/week

c)

800 units/week

d)

900 units/week

62.

Management salaries are an example of what?

a)

Quality control

b)

Fixed Costs

c)

Variable costs

d)

Material costs

63.

The labour productivity of a business is 475 units a month. The business employs 52 staff. Calculate its total output.

a)

24,600 units

b)

26,800 units

c)

24,700 units

d)

27,600 units

64.

What does automation mean?

a)

Using machines that can operate without people

b)

The development of production into batch production

c)

Handcrafted production

d)

Leading to a fall in quality

65.

The ability to switch quickly and easily from one task to another

a)

Flexibility

b)

Quality

c)

Flow production

d)

Batch production

66.

Which method of production is often the most time consuming?

a)

Job

b)

Batch

c)

Flow

67.

Which method of production normally allows you to charge the cheapest price?

a)

Batch

b)

Flow

c)

Job

68.

Which method of production uses the most highly skilled workers?

a)

Flow

b)

Job

c)

Batch

69.

Which method of production allows you to change the flavour/design of the product?

a)

Job

b)

Flow

c)

Batch

70.

Which method of production would be used to design/build a bridge?

a)

Flow

b)

Batch

c)

Job

71.

Which method of production allows a business to get a bulk buying discount?

a)

Batch

b)

Flow

c)

Job

72.

Continuous production of identical products, therefore giving scope for high levels of automation

a)

Job production

b)

Productivity

c)

Flow production

d)

Batch production

73.
Which of the following best describes quality?
a)
The service provided to a customer before, during and after purchasing.
b)
Products being made to a high standard to meet customer needs.
c)
A high level of productivity.
74.
Who needs to be satisfied with the quality of products?
a)
Rivals
b)
Suppliers
c)
Customers
75.
Which of the following is usually true about poor quality products?
a)
They are in demand
b)
They fail to meet customers expectations
c)
They are expensive
76.
What happens when a business produces faulty goods?
a)
It increases costs
b)
It increases costs and damages the reputation of the firm
c)
It is an example of Total Quality Management
77.
What happens to products that don't meet the standard set?
a)
They are sold at full price
b)
They are discarded
c)
Given away to staff
78.

Which will most likely lead to an increase in productivity?

a)

Investing in the most up-to-date machinery

b)

Reducing the number of skilled workers

c)

Employing more unskilled production line workers

d)

Cutting back on the amount of staff training

79.

Through the use of new technology, a business can boost what?

a)

Production

b)

Produce

c)

Profit

d)

Performance

80.

Which option is not a benefit of technology?

a)

Producing the right quantity at the right time

b)

Producing to high standards of consistency and quality

c)

Producing to high standards of inconsistency and quality

d)

Producing cost efficiently

81.

A factor of production is an _________ in the production process.

a)

ingredient

b)

input

c)

item

d)

output

82.

All of the following are considered to be factors of production EXCEPT?

a)

products

b)

labour

c)

land

d)

enterprise

83.

Capital as a factor of production is sometimes referred to as:

a)

entrepreneurship

b)

man-made resources

c)

human resources

d)

natural resources

84.

Which of the following formulas can be used to calculate productivity?

a)

Productivity = Output/input

b)

Productivity = input/output

c)

Productivity = Number of employees/output

d)

Productivity = Output + input/number of employees

85.

Nicholas Superior Cricket Bats Limited produces 1200 cricket bats per week with a production staff of 20 employees.  What is the labour productivity of the business?

a)

60

b)

300

c)

1180

d)

24000

86.

Which of the following products is likely to be made using job production?

a)

Heinz baked beans

b)

Cadburys Dairy Milk

c)

Land Rover car

d)

Made to measure wedding dress

87.

Select all the ways that a business could improve productivity

a)

Reduce number of employees

b)

Increase training

c)

Introduce machines

d)

More managers

88.

The role of the operations manager is to

a)

be responsible for the production of the business’s product, whether it is a manufactured good or the provision of a service.

b)

be responsible for the production of the business’s staff when producing a good or service.

c)

be responsible for the production of the business’s competitive stance within a market, whether it is a manufactured good or the provision of a service.

89.

Operations management refers to

a)

The effective management of the process of transforming inputs into outputs and maximising the efficiency and effectiveness of the production process to meet business objectives.

b)

The effective management of the process of transforming new staff into experts and maximising the efficiency and effectiveness of the production process to meet business objectives.

c)

The effective management of the process of transforming a service and maximising the efficiency and effectiveness of the production process to meet business objectives.

d)

The effective management of the process of transforming the butterfly to the penguin maximising the efficiency and effectiveness of the production process to meet business objectives.

90.

Which of the following is an advantage of job production relative to other production methods?

a)

Unit costs will be lower

b)

Production speeds are faster

c)

Workers may be better motivated

d)

Fewer resources are needed

91.

Which of the the following products is likely to be made using batch production?

a)

Mobile phones

b)

Toilet paper

c)

Petrol

d)

Clothes