4.03 MBA Questions

What is production?

• The conversion process that results in time utility

• The creation of goods and services from economic resources

Which of the following is an example of production:

• Providing home security

• Purchasing food items

The specific resources used in a company’s production are called

• outputs

• inputs

In production, the purpose of the conversion process is to

• find markets for the firm’s products.

• turn inputs into products.

What kind of conversion process is being used in an automated assembly line that produces soft drinks?

• Capital-intensive

• Batch

Which of the following outputs is considered an industrial good:

• A textbook purchased by a college student

• A freezer purchased by a restaurant owner

One of the benefits of production to consumers is that production

• provides a way to be competitive.

• creates form utility.

Why is production important to businesses?

• It creates goods and services businesses can sell.

• It enables businesses to charge high prices.

Efficient production enables businesses to

• obtain advance orders for goods and services.

• turn out the most products at the least cost.

Which of the following is a true statement about production activities:

• They vary depending on the product being created.

• They are not necessary for the success of the business.