POBF 3rd Test Study Guide

Farms, mines, and lumber

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Janine works for a gift-wrapping service. During a typical eight-hour work day, Janine wraps 52 gifts. What is her productivity rate?

6.5 gifts per hour. Janine's productivity rate is 52 gifts divided by eight hours, which equals 6.5 gifts per hour.

One way that the productivity of a business can be measured is by

Dividing the dollar value of total sales by the costs of making those sales. The productivity of a business can be measured by dividing the dollar value of total sales by the costs of making those sales. The amount of time needed to gather all necessary inputs is not a measure of productivity. The total monetary cost of all inputs used is not sufficient information to measure productivity—the dollar value of total sales is also needed. Dividing the number of products sold by the cost of distributing those items does not take into consideration other costs involved in producing the items.

A positive effect that productivity has on a business is helping it

Increase sales and profits. A positive effect that productivity has on a business is helping it increase sales and profits. Productivity allows a business to produce more from set resources. Greater outputs may result in lower prices, which in turn may result in higher sales and profits. Productivity can be used to measure the strength of the nation's economy, but this is not a benefit that is specifically related to businesses. Productivity can affect society by increasing the standard of living. Productivity can limit, but not stop, inflation.

The equipment, ingredients, and employee labor at a restaurant are all

Inputs. All the resources used in producing goods and services are known as inputs. Objectives are goals to be reached. Productivity is the amount and value of goods and services produced from set amounts of resources. Mass production is the production of a few products in large quantities.

How does increased business productivity benefit consumers?

More goods and services become available, so prices go down. Increased business productivity can create a greater variety of goods and services, and as more products become available, prices are likely to drop. Increased business productivity reduces inflation and increases the gross domestic product per capita.

The amount and value of outputs produced from set amounts of resources are known as

Productivity. Productivity is the amount and value of goods and services produced from set amounts of resources. Inputs are all the resources used in producing goods and services. Objectives are goals to be reached. Mass production is the production of a few products in large quantities.

Why is the productivity of service businesses measured differently than that of manufacturing businesses?

Service businesses are concerned about the appropriateness of their products. To measure the productivity of a service business, the quantity, quality, appropriateness, and timeliness of the service must be considered. Service businesses can be as efficient as manufacturers. Both service businesses and manufacturers may measure their productivity on a regular basis. Manufacturers produce tangible goods, while service businesses produce intangible outputs.

A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of

Specialization. Making the best use of resources in the production of goods and services is known as specialization. Division of labor involves dividing a large job into smaller job tasks that are assigned to different workers. Productivity is the amount and value of goods and services produced from set amounts of resources. Competitive advantage is the edge achieved by businesses that offer something better than the competition.

Lack of standardization occurs when

Tasks and processes are done differently every time. To achieve standardization, work must be organized so that it is always done in the same way. When employees don't understand how to use a machine or tool, there is a lack of worker knowledge and education. Poor product design can result in products that are complex and difficult to assemble. Personality conflicts arise when team members do not get along with each other.

Gross domestic product per capita is a measure of

The average worker's productivity. Gross domestic product per capita is a measure of the average productivity of individual workers. It is calculated by dividing the gross domestic product by the worker hours required to produce it. A nation's exports and imports are used to calculate just one component of gross domestic product—net exports of goods and services. Gross domestic product is a measure of everything a country produces within its borders in a year.

Why should productivity be measured?

To see whether the business's objectives are being met. Productivity may be measured to see whether a business's goals and objectives are being reached. Productivity doesn't aid in the location of new sources of inputs. Members of the finance department are responsible for determining the best ways to invest company profits. Research and development may find new ways to meet customer needs.

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A producer is someone who

makes things