Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economic topic by topic theme 2-3 > 2.3 Productive Efficiency > Flashcards

2.3 Productive Efficiency Flashcards

1
Q

Define production

A

The process of turning inputs into outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define productivity

A

Output per worker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Give the formula for productivity

A

Number of Staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

It takes a German worker __ days to produce what an English one can in 5

A

4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define Human Capital

A

Knowledge and skills embodied in people that raise productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define Physical Capital

A

Tools and machines that make labour more efficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define efficiency

A

Using scarce resources in the most economically productive way through reducing costs and maximising human and physical capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Give 6 factors that can increase productivity

A
  • Human Capital
  • Physical Capital
  • Infrastructure
  • Organisation
  • Wages
  • Workforce Motivation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Explain the relationship between productivity and pay

A
  • Improving production adds is likely to lead to an increase in wages
  • An increase in wages is likely to lead to an increase in productivity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Explain the relationship between productivity and economic growth

A
  • High productivity increases GDP as it allows for business expansion
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Explain how increased productivity could disadvantage the economy

A

COuld increase physical capital intensity and make people redundant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Explain how productivity creates a competitive advanatge

A
  • Cost per unit will fall which allows for a lower price, providing a more competitive price
  • Added profits spent on R&R
  • Increased morale will increase the quality of the good or service
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Capital intensity

A

Using large amounts of capital for production rather than labour

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define Labour Intensity

A

Using a majority of labour for production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Give a reason why Capital Intensity may not be suitable for a dynamic market

A

ore difficult to reprogramme machines than to retrain staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define capacity utilisation

A

A measure of the extent to which a business is using its productive potential

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Give the formula for Capacity Utilisation

A

Maximum possible output

18
Q

Define Under-Utilisation

A

Where a firm’s demand is too low and they cannot find enough orders

19
Q

Give 4 possible causes of Under-Utilisation

A
  • Seasonal demand
  • New competitors
  • Changes in fashion
  • Wrong balance of the marketing mix
20
Q

Give 3 benefits of Under-Utilisation

A
  • More time for maintenance and staff training
  • Less stress for employees
  • Can cope with orders well
21
Q

Give 4 disadvantages of Under-Utilisation

A
  • Higher fixed cost per unit
  • Can’t be fixed by lowering the price of the good
  • Spare capacity can portray the image of being poor quality
  • Staff can become demoralised
22
Q

Give 5 possible solutions of Under-Utilisation

A
  • Try to find a new business
  • Rationalisation
  • Short-term work
  • Redundancies
  • Extending the product range
23
Q

Define Rationalisation

A

Selling off or shutting down parts of a business

24
Q

Define Over-Utilisation

A

Where a firm is struggling to cope with demand

25
Q

Give 4 causes of Over-Utilisation

A
  • Seasonal demand
  • Competitor dropping out of the market
  • Fashion changes
  • Successful marketing
26
Q

Give a benefit of over-utilisation

A

Revenue is high

27
Q

Give 3 disadvantages of Over-Utilisation

A
  • Average costs higher than necessary
  • Efficiency low
  • The business is not as competitive as it should be
28
Q

Give 4 possible solutions to Over-Utiliastion

A
  • Extra shifts
  • Temporary staff
  • Outsourcing or subcontracting
  • Expansion
29
Q

Define Lean Management

A

An approach to management that focuses on minimising waste and cost whilst ensuring quality

30
Q

Define Quality Control as a method of production

A

The traditional method of checking products are adequate to sell after production is finished

31
Q

Define Quality Assurance as a method of production

A

Ensuring that quality standards are agreed and met throughout the production process

32
Q

Define Total Quality Management as a method of production

A

Employees all involved in taking responsibility for their team’s work

33
Q

Order these 3 methods of production in order of most to least strict (Quality Assurance, Quality Control, Total Quality Management)

A

Total Quality Management
Quality Assurance
Quality Control

34
Q

Define Kaizen production

A

Continuous improvement where the whole company strive for improvements constantly

35
Q

Define lead time

A

The time it takes for a decision to produce a good to its arrival on the market

36
Q

Give 2 ways in which lean production can lead to a competitive advantage

A
  • Gain a first movers advantage

- Allows an advantage in a price elastic market where they wouldn’t be able to otherwise

37
Q

Define ‘Just in Time Production’

A

A stock control system that removes the need to store large quantities of stock

38
Q

Give 5 advantages of ‘Just in Time Production’

A
  • Reduced rent costs
  • Increased capital intensity cuts wages
  • Less likelihood of stock perishing
  • Allows adaptation to trend changes
  • Avoids the buildup of low demand products
39
Q

Give a disadvantage of ‘Just in Time Production’

A

Can’t deal with unexpected, high-demand orders

40
Q

How can minimising waste give a business a better perception?

A

They will have a better reputation which will attract more cutomers

41
Q

How do reduced lead times benefit a business?

A

Makes the firm more market orientated and allows them to respond to changes in consumer demand

Economic topic by topic theme 2-3 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions