Production
Commerce · 50 practice questions
Factors of production and their rewards (land, labour, capital, entrepreneur); division of labour and specialization; types of production — primary, secondary and tertiary.
- Identify the factors of production and their rewards.
- Distinguish between division of labour and specialization.
- Classify the types of production.
Try a few questions
- Practice question 1
'Standardization' in production refers to producing goods that
- A.Conform to a set, uniform specification or quality across all units produced
- B.Can only be produced by hand, never by machine
- C.Are each uniquely different from one another with no consistency
- D.Have no defined specifications whatsoever
Show the answer
A. Conform to a set, uniform specification or quality across all units produced
Standardization means producing goods that conform to a uniform, set specification across all units.
- Practice question 2
A firm's 'break-even point' is the level of output or sales at which
- A.Total revenue exceeds total cost, generating profit
- B.Total revenue exactly equals total cost, so the firm makes neither a profit nor a loss
- C.Total revenue is always zero
- D.Total cost is always zero
Show the answer
B. Total revenue exactly equals total cost, so the firm makes neither a profit nor a loss
The break-even point is where total revenue exactly equals total cost, resulting in neither profit nor loss.
- Practice question 3
An example of primary production would be
- A.Selling clothes in a retail shop
- B.Assembling cars in a factory
- C.Growing crops on a farm
- D.Providing banking services
Show the answer
C. Growing crops on a farm
Growing crops on a farm is an example of primary production, extracting resources directly from nature.
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