WorksheetsEconomies of Scale
Total questions: 15
Worksheet time: 15mins
Which of the following is an example of external economies of scale in tourism?
A hotel providing complimentary breakfast to guests
A city developing better transportation infrastructure that benefits all hotels
A resort expanding its facilities to accommodate more guests
A travel agency offering exclusive packages to a single hotel
Which of the following is an example of internal economies of scale?
A company negotiating lower prices for bulk materials
A city developing infrastructure that benefits all local businesses
A firm using advanced technology to improve efficiency
A government providing tax incentives to all manufacturers
What is meant by 'economies of scale'?
An increase in the average cost of production as output increases
A saving in average cost of production as output increases
A decrease in the quality of products as output increases
An increase in the number of employees as output increases
Which of the following best describes the relationship between production output and average cost in economies of scale?
As production output increases, average cost increases
As production output increases, average cost decreases
As production output increases, average cost remains constant
As production output increases, average cost fluctuates
Which of the following is an example of technical economies of scale?
Borrowing money at a lower interest rate
Purchasing raw materials in bulk
Upgrading technology to reduce production costs
Reducing marketing expenses
Which type of economy of scale involves purchasing goods in bulk?
Technical economies of scale
Financial economies of scale
Marketing economies of scale
Purchasing economies of scale
What happens to unit costs as production output increases, according to economies of scale?
Unit costs increase
Unit costs remain the same
Unit costs decrease
Unit costs fluctuate randomly
Which of the following is an example of managerial economies of scale?
A) Hiring more managers to oversee production
B) Implementing a new software to streamline operations
C) Training existing staff to improve efficiency
D) Centralizing decision-making processes
What is a characteristic of economies of scale in the context of social studies?
A) Increased cultural diversity
B) Reduced average costs with increased production
C) Greater political influence
D) Enhanced social welfare programs
Which of the following scenarios illustrates diseconomies of scale?
A) A factory experiencing higher costs due to over-expansion
B) A company reducing costs by buying in bulk
C) A business improving efficiency with better technology
D) A firm benefiting from government subsidies
How do economies of scale affect competition in a market?
A) They increase the number of small businesses
B) They create barriers to entry for new firms
C) They reduce the need for innovation
D) They lead to higher prices for consumers
Which of the following is a social benefit of economies of scale?
A) Increased unemployment
B) Lower prices for consumers
C) Greater income inequality
D) Reduced environmental impact
What role do economies of scale play in globalization?
A) They limit international trade
B) They encourage the spread of technology
C) They increase tariffs on imports
D) They reduce cultural exchange
Which of the following best explains the concept of 'purchasing economies of scale'?
A) Buying goods at a higher price due to scarcity
B) Acquiring materials at a lower cost due to bulk buying
C) Selling products at a premium price
D) Reducing the quality of products to save costs
What is a potential downside of economies of scale for large corporations?
A) Increased flexibility in operations
B) Greater innovation
C) Risk of becoming too bureaucratic
D) Enhanced customer service
