Production

Question 1

Commercial services

Answer 1

Commercial services support the activities

carried out in the primary and secondary sectors of production to help the product reach the consumer.

Question 2

Product

Answer 2

Products are the goods and services produced by businesses to satisfy needs
and wants of customers.

Question 3

Producer

Answer 3

A producer is a person or company who produces products to satisfy needs and wants.

Question 4

Consumer

Answer 4

Consumers are the ultimate users of goods and services produced.

Question 5

Customer

Answer 5

The person who purchases the product. This can be for own consumption or any other reason.

Question 6

Chain of production

Answer 6

The various stages through which the production of goods passes to reach the consumer. (Primary production to consumer)

Question 7

Specialization

Answer 7

When individuals, organizations, or whole economies concentrate on making a limited range of products or providing a specific service is called Specialization.

Question 8

Specialization by region

Answer 8

This occurs when an area or region covering a number of countries is able to produce large quantities of particular products often from natural resources.

Question 9

Specialization by country

Answer 9

This means countries are specialized in what they do best.

Question 10

Specialization by city or town

Answer 10

This means when a certain part of a country such as a town or a city concentrates on producing certain goods or services.

Question 11

Specialization by factory

Answer 11

An organization may focus on each of its factories in a particular
product type.

Question 12

Specialization by individual

Answer 12

An individual can also specialize and become known for a particular skill.

Question 13

Specialization by process

Answer 13

The production process is broken down into different tasks so each individual performs a particular task given to perform.

Question 14

Division of labor

Answer 14

Division of labor means breaking down production so that each individual
performs a specific task.

Question 15

Simplification

Answer 15

This means making a product as simple and functional as possible.

Question 16

Standardization

Answer 16

This means making products all alike or making parts so that they can be used in several different products.

Question 17

Economies of Scale

Answer 17

The reduction in the unit cost of production as the size of the business increases.

Question 18

Purchasing economy

Answer 18

When purchasing raw materials in bulk receive greater discounts than buying in small quantities.

Question 19

Managerial economy

Answer 19

This means employing specialist managers to manage particular functions inside the companies, so they may help to reduce the average cost of production by making better decisions.

Question 20

Technological economy

Answer 20

Large businesses can afford to buy the latest machinery and introduce automated and computerized systems into their factories. Using such advanced technologies held into businesses to help to reduce average
costs.

Question 21

Commercial economy

Answer 21

Larger firms are able to afford national advertising and use their own delivery vehicles. This will help them to reduce advertising costs per unit of sale and transport costs per unit.

Question 22

Comparative advantage

Answer 22

The concept is that countries can benefit by specializing in producing the goods and services that they are most efficient at producing.

(the ability of an individual or group to carry out a particular economic activity more efficiently than another activity.)

Question 23

Commerce

Answer 23

Commerce is the aid to trade and distribution of goods and services.

Question 24

Trade

Answer 24

Trade is the buying and selling of goods and services to make a profit.

Question 25

Home Trade

Answer 25

This means the internal trade of the country is also explained as buying and selling goods and services within a country (domestic market)