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- 1. Multiple Choice
Which of the following is a primary need?
money
transport
land
food
- 2. Multiple Choice
Which of the following is not a factor of production?
food
land
labour
capital
- 3. Multiple Choice
In a subsistence economy the main source of production is:
exports
manufacturing
agriculture
mining
- 4. Multiple Choice
Which of the following is a diseconomy of scale?
extensive advertising is practicable
labour-saving machinery can be used
more capital is available
lines of communication can become complex
- 5. Multiple Choice
Fixed capital includes:
buildings
stocks
bank balance
stationery
- 6. Multiple Choice
The Law of Diminishing Returns states that with additions to labour:
marginal output rises
average output rises
marginal output falls
total output increases
- 7. Multiple Choice
The labour force of a country is:
all people below retirement age
all persons who are employed or are available for work
the total population
all persons over the school leaving age
- 8. Multiple Choice
Automation in industry can result in:
increased need for tertiary services
employment of a larger workforce
a more skilled workforce
increased production costs
- 9. Multiple Choice
WHAT ARE THE 4 FACTORS OF PRODUCTION?
Land, Capital, Needs & Wants
Land, Labour, Capital, Entrepreneurship
Water, Air, Food & Shelter
Land, Capital, Good & Service
- 10. Multiple Choice
WHAT IS LABOUR?
work people do for pay to produce good and services
actions people do for other people
any physical object
The money people get for inheritance
- 11. Multiple Choice
_______________ IS KNOWN AS FACTOR THAT GIVES THE NATURAL RESOURCES USED TO PRODUCE GOODS AND SERVICES
Entrepreneurs
Capital
Labour
Land
- 12. Multiple Choice
_______________ IS KNOWN AS THE MANMADE RESOURCES USED TO PRODUCE GOODS AND SERVICES.
Entrepreneurs
Capital
Labor
Land
- 13. Multiple Choice
Which of the factors of production is this?
capital
entrepreneur
land
labour
- 14. Multiple Choice
Which one of the factors of production is this?
capital
entrepreneur
land
labour
- 15. Multiple Choice
Which factor of production do these represent?
capital
entrepreneur
land
labour
- 16. Multiple Choice
This factor involves money, equipment, and tools and any items to produce goods and services?
capital
entrepreneur
land
labour
- 17. Multiple ChoiceAny technology/machinery involved in the production process:Human CapitalPhysical CapitalInvestment CapitalEnterprise Capital
- 18. Multiple ChoiceAn individual's knowledge or skills that make production of a good/service more efficientHuman CapitalPhysical CapitalInvestment CapitalEnterprise Capital
- 19. Multiple ChoiceEach society must determine how to best use its_______PeopleLandNatural ResourcesAll of the above
- 20. Multiple ChoiceWhat are the three economic questions?What to produce? How to produce? For whom to produce?Who to produce? Why you produce? Like to produce?Why to produce? Tell who to produce? Things to produce?
- 21. Multiple Choice
Land includes...
The "gifts of nature" or natural resources not created by human effort.
the tools, equipment, and factories used in production of goods and services
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
- 22. Multiple Choice
Capital refers to...
The "gifts of nature" or natural resources not created by human effort.
people with all their efforts and abilities
the tools, equipment, and factories used in production of goods and services
individuals who start a new business or bring a product to market.
- 23. Multiple Choice
Labour refers to...
people with all their efforts and abilities
individuals who start a new business or bring a product to market.
the tools, equipment, and factories used in production of goods and services.
The "gifts of nature" or natural resources not created by human effort.
- 24. Multiple Choice
Production refers to the creation of goods and services.
True
False
- 25. Multiple Choice
Wants are referred to as primary needs.
True
False
- 26. Multiple Choice
Any activity connected with money earning and money-spending is called an economic activity.
True
False
Maybe
- 27. Multiple Choice
Physical goods is also known as INTANGIBLE GOODS.
True
False
Maybe
- 28. Multiple Choice
Services are activities provided by other people, who include doctors, lawn care workers, dentists, barbers, waiters, or online servers, a book, a digital video game or a digital movie
True
False
Maybe
- 29. Multiple Choice
There are four main methods of production.
True
False
Maybe
- 30. Multiple Choice
Domestic Level
At this level, goods are produced locally and not exchange or exported. Enough is produced to provide for the local market.
True
False
Maybe
- 31. Multiple Choice
Enough goods are produced with the intention of exporting to other country. This is called subsistence level.
True
False
Maybe
- 32. Multiple Choice
There are 5 methods of Production.
True
False
Maybe
- 33. Multiple Choice
....................... is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).
Production.
Labour.
Land.
Product.
- 34. Multiple Choice
Making a large quantity of identical products
Job
Batch
Flow
- 35. Multiple Choice
Making individual products that are bespoke (fit each customer's needs)
Job
Batch
Flow
- 36. Multiple Choice
Making different varieties of identical products. The production process is broken into stages
Job
Batch
Flow
- 37. Multiple Choice
During production process inputs are converted into ______________.
store
machines
raw materials
outputs
- 38. Multiple Choice
Stones are examples of ____________
Finished products
Goods
Parts
Raw materials
- 39. Multiple Choice
Which of the following is NOT true with production process
firms adding value to a product
transforming raw materials into finished goods
provision of a product or service
providing only a product, not service
- 40. Multiple Choice
Which of these is a service?
beverage factory
plumbing
readymade dresses
birthday cakes baked by a supermarket
- 41. Multiple Choice
Which of the following is true for productivity?
productivity is how products are made
productivity is a measure of how many workers a business has
productivity measures efficiency
productivity measures effectiveness
- 42. Multiple Choice
Which of these isn't a method of improving productivity?
employing more staff
providing pay incentives
investing in up-to-date machinery
training staff
- 43. Multiple Choice
Which of the following statements is correct?
the level of production is the total number of goods produced per worker
productivity is the same as output in a given time period
increasing production leads to increased productivity
reducing productivity per worker will increase the number of workers
- 44. Multiple Choice
One of the benefits of increasing productivity is:
more workers will be employed
total production will increase with the same number of workers
average costs will stay the same
fewer raw materials will be needed to produce the same level of output
- 45. Multiple Choice
Which of the following is the best definition of 'an increase in efficiency'?
higher output levels than last year
lower total costs of production
fewer workers employed but output level remains the same
10% more workers employed and output also rises by 10%
- 46. Multiple Choice
The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called
physical capital.
natural resources.
human capital.
technological knowledge.
- 47. Multiple Choice
The possible disadvantage of growing a business may be
Keeping control over decision making
Larger potential profits
Benefit from bulk buying discounts
Security for the future of the business
- 48. Multiple Choice
A merger is
Two business agreeing to becoming one new business
One business buying shares in another business
One business taking over control of another business
Two businesses co operating with each other.
- 49. Multiple Choice
Advantages of a Merger might be...
(select THREE applicable answers)
Better deals because of increased order size, bulk-buying discounts etc.
Increased revenue and market share. Increased size of the combined company increases market power and ability to set higher prices
To gain resources. If one company has resources (e.g. technology) that another one wants then a merger may be the most cost effective way to get access to those resources
Slow growth so can be easily managed
- 50. Multiple Choice
Disadvantages of Mergers could be..............
(Select THREE applicable answers)
Clash of Cultures. All businesses have a slightly different culture and they may not work well together
Mergers lead to bigger more efficient business
Possible communication problems. As the business gets bigger, or if there are now too many employees
Unreliable partners. A good merger will depend on trust between the businesses
- 51. Multiple Choice
Which option best describes the term takeover?
When two firms agree to join together to make one new business
When a business finds a new market in another country
When one business purchases another business
When a business brings something new to the market
- 52. Multiple Choice
Which best describes growth by expanding overseas? When a business:
Finds new customers to buy its products in its domestic market
Purchases another business in its home country
Finds a new market in another country
Invests heavily in research and development
- 53. Multiple Choice
Nike buying a materials producer would be a form of...
Vertical Forward Integration
Horizontal Integration
Vertical Backward Integration
Diversification
- 54. Multiple Choice
Horizontal integration is...
When 2 companies in the same industry at the same stage of production join e.g. H&M and Zara
When 2 companies in the same industry at different stages of production join e.g. H&M and a textiles factory
When 2 companies in different industries join e.g. H&M and Costa
- 55. Multiple Choice
IInternal growth is also known as ORGANIC growth. External growth is also called INORGANIC growth
A benefit of organic growth is
It is quick
The business can benefit from economies of scale (lower unit costs)
Its more likely to fail than inorganic growth
- 56. Multiple Choice
Developing new products is an example of
market development
mergers
innovation
- 57. Multiple Choice
Why might a business want to grow?
More Profit
Give employees more time off
To improve the business image
To sell less products
- 58. Multiple Choice
Another reason why a business may want to grow is......
To gain more competition
To gain more customers
To reduce the amount of stores
- 59. Multiple Choice
Which of the following is NOT Internal/organic growth?
Opening a new location
Expanding through internet selling
Merging with a similar company
Offering franchises
- 60. Multiple Choice
Vertical integration occurs when...
firms in the same industry and at the same stage of the production process combine to form a larger business.
when a firm expands by combining with an existing business in the same industry but at a different stage of the production process.
Involves take over or merger with another firm in an unrelated industry.
- 61. Multiple Choice
BMW Motors Purchasing AUDI is an example of....
Vertical integration
Horizontal Integration
Diversification
- 62. Multiple Choice
Apple buying a company that creates microchips for phones and computers is an example of...
Vertical integration
Horizontal Integration
Diversification
- 63. Multiple Choice
McDonalds buying a cattle farm would be an example of...
Vertical integration
Horizontal integration
Diversification
- 64. Multiple Choice
The mining of minerals is called...
drilling
manufacturing
servicing
extracting
- 65. Multiple Choice
If you take your car is broken and you take ii to the mechanic, , is it the secondary production sector involved?
No, the mechanic is tertiary sector.
Yes, it is secondary sector
- 66. Multiple Choice
Name the activity and the prodcution sector
Agriculture, secondary
Fish Farming, secondary
Agriculture, primary
Fishing, primary
- 67. Multiple Choice
Name the activity and the production sector
Construction, primary
Mining, secondary
Extracting, tertiary
Mining, primary
- 68. Multiple Choice
Name the activity and production sector
Farming, secondary
Agriculture, primary
Manufacturing, secondary
Agriculture, secondary
- 69. Multiple Choice
Name the activity and sector
Sewing, primary
Textile, primary
Seamstress, primary
Textile, secondary
- 70. Multiple Choice
Name the activity and the production sector
Construction, seconday
Metallurgy, tertiary
Metallurgy, primary
Manufacturing, secondary
- 71. Multiple Choice
Primary industry is also known as extractive industries
True
False
- 72. Multiple Choice
Secondary industry is also known as _____________ industry
manufacturing
extractive
mining
- 73. Multiple Choice
Making soaps, carpets, sugar, etc is an example of _________ industry
primary / extractive
secondary / manufacturing
tertiary
- 74. Multiple Choice
Banking is an example of ____________ industry
Primary / Extractive
Secondary / Manufacturing
Tertiary
- 75. Multiple Choice
The industry that provides goods and not services is called tertiary industry
True
False
- 76. Multiple Choice
The industry that includes the process of making goods from raw materials is called ____________
Primary / extractive
Secondary / manufacturing
tertiary
- 77. Multiple Choice
Mining comes under ___________ industry
Primary / extractive
Secondary / manufacturing
tertiary
- 78. Multiple Choice
What are levels of production?
Primary Production
Producing at the secondary level
The amount of goods produced
- 79. Multiple Choice
Producing only enough to meet the basic needs of the family is called?
Domestic Production
Subsistence Production
Surplus Production
- 80. Multiple Choice
This level of production allows a country to earn foreign exchange from the selling of its products.
Subsistence Production
Domestic Production
Surplus/Export Production
- 81. Multiple Choice
Selling goods at your local market is which level of production?
Domestic Production
Export/Surplus Production
Subsistence Production
- 82. Multiple Choice
If Jamaica is able to produce enough goods to satisfy the needs of persons in the country, Jamaica is practicing which level of production?
Domestic Production
Export Production
Subsistence Production
- 83. Multiple Choice
When China sells its products to other countries, this is which level of production?
Subsistence Level of Production
Domestic Level of Production
Surplus/Export Level of Production
- 84. Multiple ChoiceEconomies of scale are the reduction in costs of production achieved through increased output.TrueFalse
- 85. Multiple ChoiceInternal diseconomies of scale can be caused byBeing unable to purchase stocks at a discounted priceManagement control being weakened with a larger workforceTraffic congestion causing delays to delivery of important stocksAdvertising costs to a global audience
- 86. Multiple ChoiceIf a firm increases its use of all factors of production but sees an increase in its average costs, this is a sign ofInternal diseconomies of scaleExternal returns to scaleDiminishing marginal returnsDecreasing returns to scale
- 87. Multiple ChoiceInternal economies of scale are those thatResult from changes in production techniquesIncrease due to the growth of the industry as a wholeGenerate lower unit costsReduce production costs in the short run
- 88. Multiple ChoiceExternal economies of scale can arise fromBulk purchases of raw materials, parts and components at favourable pricesThe introduction and use of advanced technologySpecialised back-up services available in a particular regionLower interest rates, thus reducing the cost of borrowing to large companies
- 89. Multiple ChoiceIf a firm doubles its use of inputs and finds that output increases by 50%, then it has experiencedGrowthEconomies of scaleDiseconomies of scaleEvolution
- 90. Multiple ChoiceTechnological economies of scale can only be feasible for a business ifBanks lend money for the purchase of highly expensive technologyCapital equipment is capable of producing mass units of a product in a short timeThere is an economic boomThere is sufficient market demand for the product
- 91. Multiple Choice
Which of the following is not a suitable method for measuring the size of a firms?
The number of employees
the size of the profit
the amount of capital employed
the size of turnover
- 92. Multiple Choice
Which of the following is not an advantage of a small firm?
Better communication
flexibility
economies of scale
a personal service can be offered
- 93. Multiple Choice
Which of the following is a disadvantage of small firms?
economies of scale
lack of finance
too bureaucratic
poor worker motivation
- 94. Multiple Choice
which of the following is not an advantage of a large firm?
market domination
economies of scale
better communication
can undertake large scale contracts
- 95. Multiple Choice
which of the following is an advantage of a small firms?
can benefit from economies of scale
ability to offer a personal service
can access a greater range of finance options
can attract the most qualified and experience staff
- 96. Multiple Choice
Which of the following is not a disadvantage of a small firm?
struggle to raise finance
difficult to attract highly qualified and experienced staff
can adapt more quickly to change
cannot exploit economies of scale
- 97. Multiple Choice
Which of the following factors encourage firms to grow?
poor access to sources of finance
desire to spread risk
government regulation monitoring levels of competition in a market
global economic instability
- 98. Multiple Choice
Which of the following is not an advantage of a large firm
can win large scale highly profitable contracts
lower average costs due to size
personal contact may be lacking impacting on employee motivation
can dominate a market and have a high public profile which they can exploit
- 99. Multiple Choice
A small business or manufacturing activity is called a cottage industry?
True
False
- 100. Multiple Choice
A business or manufacturing activity carried out in people's homes is called...
A Small Business
A Medium Enterprise Business
A Cottage Industry
A Limited Company
- 101. Multiple Choice
Which of the following is not one one of the key features of a cottage industry?
Carried out in persons homes
Typically use traditional or small scales technology
Often use local raw material
Usually hire employees from the community
- 102. Multiple Choice
Which of the following is NOT a disadvantage of operating a cottage industry?
Operators may lack marketing skills
Raw materials may be hard to obtain
Cottage industry usually offers low and attractive prices
Long hours of work usually required
- 103. Multiple Choice
Which of the following falls under cottage industry
The Village Corner Store operated by Tanty Pam on the busy junction.
The local barbershop operated in the community mall
The large supermarket at the mall
The carpenter operating at his home
- 104. Multiple Choice
Which is NOT a characteristic of cottage industry?
Based at home
Labour- intensive production
Use of readily available resources
Highly trained employees
- 105. Multiple Choice
Which of the following businesses may be BEST categorized as a cottage industry?
Linda's Hear Dressing Salon
Otis Mini Mart
Vicky's Handicraft
Eva Brewery Ltd.
- 106. Multiple Choice
All of the following can be considered disadvantages of cottage industries EXCEPT:
Flexibility in working hours
High cost of production
Lack of standardisation in output
Dependence upon local raw materials
- 107. Multiple Choice
A cottage industry can BEST be described as
A business with one person responsible for all aspects
A business that builds homes
A business carrying out production at home
A business catering to the needs of the local community
- 108. Multiple Choice
A cottage industry business, most likely has ____________
Unlimited Liability
Limited Liability
Large Labour Force
Lots of Sophisticated Capital Equipment
- 109. Multiple Choice
Linkage Industries are ______
closely connected to each other
part of the public sector
capital intensive
engaged in mass production
- 110. Multiple Choice
Which of the following is a forward linkage?
A farmer providing manure for other farmers
A farmer buying fertiliser from garden store
Oil manufacturer buying bottles from bottle manufacturer
Bottle manufacturer buying petroleum from crude oil industry
- 111. Multiple Choice
Forward linkage is where_______
one industry provides raw materials for another
one industry depends on another for their raw materials
one industry sells their product to the public
one industry buys their materials from a manufacturer
- 112. Multiple Choice
An advantage of the linkage industry is _______
It provides a guaranteed market for your product
It provides a guaranteed source for your raw materials
It is cheap and easy to set up
It makes use of local resources
- 113. Multiple Choice
An advantage of the linkage industry is _______
It provides a guaranteed market for your product
It provides a guaranteed source for your raw materials
It is cheap and easy to set up
It makes use of local resources
- 114. Multiple Choice
Linkage industries benefit the economy by all EXCEPT_____
providing employment
allowing money to remain in the country
passing down traditions from one generation to the next
- 115. Multiple Choice
Which of the following is best suited as a forward linkage industry for Tamarind Balls?
Tamarind from a farmer
Tamarind tree from a garden store
Tamarind sauce from a chef
Local Produce Store at a hotel
- 116. Multiple Choice
Jamaica has large amounts of bauxite. What can be produced from bauxite?
aluminum
chips
- 117. Multiple Choice
The Caribbean Islands once had many tropical forests, but few timber resources are available today. What is timber?
wood used for building
water used for farming
- 118. Multiple Choice
Bauxite is found in abundance in both Jamaica and __________.
Guyana
Trinidad and Tobago
Barbados
Grenada
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