Section 3-3 (C20&21)

Front

Which stage of production covers house building? Options: primary, secondary, tertiary, quaternary

Back

secondary

Front

The directors of a firm decide to buy out another firm in the same industry despite a report indicating that the new combined firm will experience diseconomies of scale. What is likely to be the short-term objective of the directors?

Back

growth

Front

What could explain a rise in a firm's production but a fall in the productivity of the labour it employs? Options: higher wages paid to workers, improved training, less skilled workers being recruited, more efficient machine being used

Back

less skilled workers being recruited

Front

Which type of merger aims to ensure control of retail outlets? Options: conglomerate, horizontal, vertical backwards, vertical forwards

Back

vertical forwards

Front

A confectionery (糖果店) manufacturer buys a local newspaper. What type of merger is this?

Back

conglomerate integration

Front

Which economy of scale is an external economy?

Back

ancillary (辅助的) industries providing goods and services for the industry

Front

Which feature is an advantage of small scale production? Options: diversification, division of labour, economies of scale, flexible production

Back

flexible production

Front

What can cause internal economies of scale? Options: a firm's costs rising by more than its output, a reduction in a firm's productive efficiency, an increase in the size of a firm's factories, a rise in the number of firms in the industry

Back

an increase in the size of a firm's factories

Front

What is likely to be a feature of an industry using capital-intensive production methods?

Back

high set-up costs