Production Chapter 11

Question 1

What are some ways to improve labour productivity?

Answer 1

1.Increasing wages
2.Improve working conditions
3.Opportunties for promotion
4.Promation of education and training opportunities

Question 2

What does the production process involves ?

Answer 2

1.Manfacter of goods
2.Distrubution of goods produce
3.The provision of services

Question 3

What is factors of production?

Answer 3

Are resources that are used to produce goods and services

Question 4

What are the four factors of production?

Answer 4

Land, Labor, Capital, Enterprise

Question 5

Land is

Answer 5

All naturally free occurring gifts of nature

Question 6

Labor is

Answer 6

The physical and mental efforts of man

Question 7

Capital is

Answer 7

Man made aids to production eg factories

Question 8

Enterprise is

Answer 8

The ability to combine all the other factors of production and take risks in establishing new ventures

Question 9

Land reward/factors income is

Answer 9

Rent

Question 10

Labour reward/factor income is

Answer 10

Wages

Question 11

Capital reward/factor income is

Answer 11

Interest

Question 12

Enterprise reward/factor income is

Answer 12

Profit

Question 13

Production cost consists of

Answer 13

Fixed Cost and Variable Cost

Question 14

Fixed cost is

Answer 14

Cost that will be incurred whether or not output is produced

Question 15

Example of Fixed Cost

Answer 15

Light bill, water rate, rent

Question 16

Variable Cost is

Answer 16

Vary with the level of output that is produced

Question 17

Example of Variable Cost

Answer 17

Wages

Question 18

How to calculate Total Cost

Answer 18

Fixed Cost + Variable Cost = Total cost

Question 19

Marginal Cost is

Answer 19

The change in total cost when one more unit of labour is hired

Question 20

How to calculate Marginal Cost?

Answer 20

Change in Total Cost ÷ Change in Quantity

Question 21

How to calculate the Variable Cost?

Answer 21

Total Cost - Fixed Cost

Question 22

What is Production Cost?

Answer 22

Consist of :
~ Fixed Cost
~ Variable Cost