Page 451 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

Section 4 – Multiple choice

1 Which of the following is an input in the production process?

A Money
B Labour

C Added value
D Packaging

2 Production can be defined as:
A how efficiently inputs are changed into outputs

B the process of changing goods into services
C the process of changing inputs into outputs

D how efficiently inputs are used.

3 A firm employs 40 workers. The average weekly output is 10,000. The average weekly labour productivity is:

A 40%
B 250%
C 40

D 250

4 One way of improving labour productivity is to:

A employ more workers
B replace machines with workers

C reduce spending on training of workers
D invest in new technologies.

5 Which of the following might be a benefit of flow production?
A The business holds high levels of inventories.

B Labour turnover increases.
C The business might benefit from purchasing economies of scale.

D A business can produce products for niche markets.

6 Which of the following is a limitation of batch production?

A Workers are highly motivated.
B Unique, highly quality products are made.
C It is capital intensive.

D Economies of scale are unlikely.

© Cambridge University Press 2014 IGCSE Business Studies Section 4 – Multiple choice 1