Vocabulary exercises

13. Answer the following multiple-choice questions:

19. Productivity is a measure of

27. input per unit of output

28. output per unit of input

29. how hard the labour force works

30. amount of retained earnings

20. Which of the following is usually the largest input in the production process?

32. Land

33. Labour

34. Capital

35. Scarce resources

%

21. Increasing specialization and division of labour within a business will likely cause the unit cost of labour

4. to increase

5. to decrease

6. to remain the same

7. either a) or c)

14. Why do workers in a factory each perform different tasks?

22. Because the boss tells them what to do

23. In order to receive wages

24. To charge a higher price

25. Because specialization increases their productivity

15. The basic means of increasing productivity and lowering costs is through

31. improved technology

32. investment in capital goods

33. decrease of competition

34. combination of a) and b)

36. Explain the following phrases taken from the text. Use a dictionary if necessary:

8. the progress in minimizing the effects of scarcity has been largely due to a more efficient use of the productive resources

9. labour relates directly to wages and living standards

10. an increase in productivity

11. improvements in technology

12. division of labour

37. Determine which of the following statements are true and which are false. Correct those statements which are false

6. Productive resources are the inputs

7. A business firm can continually increase its output by adding more and more workers

8. Production and productivity are the same things

9. An increase in production must result in an increase in productivity

10. Division of labour reduce creativity

38. Find the terms in the text which describe the following:

6. The process of providing goods and services.

7. Finished goods and services on the opinion of economists.

8. The rate at which goods or services are produced especially output per unit labour.

9. Materials needed to produce the goods and services.

10. A cobbler and a farmer concentrate their talents and efforts in one area, they can produce more shoes and food than if each tried to produce both products.

11. Producing more goods and services with the same amount of resources, or producing the same amount of goods and services with fewer resources.

12. Producers exchange with each other to get the desired goods.

16. A major consequence of increased productivity due to specialization and exchange.

17. Specialization in specific production process.

18. Dividing the production process into a number of steps which can be performed by different people.

26. Answer the following questions:

35. What is production?

36. What does productivity measure?

37. Why is important to increase productivity?

38. What are the ways of increasing productivity?

39. Explain how specialization and division of labour increase productivity?

40. What are the disadvantages of specialization and division of labour?

41. Explain why increased productivity is important to the economy and to individuals.

42. What does the division of labour result in?

43. Can the monotony of going only one specific task in the production process effect the productivity? Why or why not?