Ch.15- Production of goods and services

Question 1

Production

Answer 1

The process of converting inputs such as land, labour and capital into saleable goods

Question 2

Productivity

Answer 2

A measure of the efficiency of inputs used in the production process, especially labour and capital

Question 3

Inventories

Answer 3

The stock of raw materials, work-in-progress and finished goods held by a business.

Question 4

Lean production

Answer 4

The production of goods and services with the minimum waste of resources

Question 5

Job production

Answer 5

The production of items one at a time

Question 6

Batch production

Answer 6

The production of goods in batches. Each batch passes through one stage of production before moving on to the next stage.

Question 7

Flow production

Answer 7

The production of very large quantities of identical goods using a continuously moving process

Question 8

Capital intensive

Answer 8

Production process that uses a high quantity of capital equipment compared with labour input