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WorksheetsIGCSE EOS
Total questions: 20
Worksheet time: 22mins
Fill in the blank. Economies of scale is when as output _________, unit costs ________ in the long run.
increases; decrease
increases; increase
decreases; increase
decreases; decrease
Internal economies of scale are those that
Result from changes in production techniques
Increase due to the growth of the industry as a whole
Generate lower per unit production costs
Reduce production costs in the short run
Larger firms are better able to diversify into a range of product areas or markets and thus lessen their risk. This is an example of
Financial economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Large firms can afford to advertise and sell in larger quantities to develop brand loyalty. This is an example of
Purchasing economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Large firms can negotiate better interest rates on loans; this reduces the costs of borrowing for larger companies. This is an example of
Financial economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Large firms can buy raw materials in bulk at more favourable rates. This is an example of
Purchasing economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Fill in the blank. __________ economies of scale occur due to an increase in the scale of production within a single firm
Internal
External
Complex
Simple
Larger firms can hire specialists (e.g. managers, accountants) and are therefore able to increase productivity. This is an example of
Purchasing economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Which of the following EOS refers to improving the production process?
Financial
Managerial
Technical
Purchasing
Machinery is likely to be efficient. what economies does it indicate?
External economies of scale can arise from
Bulk purchases of raw materials, parts and components at favorable prices by a particular business/firm
Purchase and use of physical/human capital by a particular business/firm
Greater availability of skilled laborers for a particular industry in a particular area
A business/firm being able to obtain lower interest rates on loans
What are economies of scale?
Economies of scale describe the benefits of reducing the workforce during production.
Economies of scale are the cost advantages that arise when production becomes more efficient as the scale of output increases.
Economies of scale refer to the increase in product quality as production rises.
Economies of scale are the financial losses incurred when production is too high.
