Principles of Business and Finance A - Finance and Marketing part 2

If increasing the number of goods produced is one way to increase productivity, what is the other way to increase productivity?

Increase market share

A business made some changes to its processes, and its productivity increased by 25%. If it previously was able to produce 10,000 of its product with a total resource investment of $8,000, how much of its product can be produced if it now invests twice as much in resources?

25,000

Which of the following is an example of cross-training?

A graphic designer is taking classes in project management andfinance to improve her skills in those areas.

Which of the following is an example of specialization?

An engineer is an expert at designing roofing systems

Suppose company A can produce shovels for $8 each, axes for $12 each, and rakes for $15 each. Company B can produce shovels for $10 each, axes for $11 each, and rakes for $17 each. Company A sells each item for $5 more than its production cost. Company B sells shovels for $13, axes for $15, and rakes for $18. Which of the following statements is true?

Company A has a comparative advantage in the production of axes.

What term refers to the productivity benefits companies receive from producing large volumes of a product?

Economies of scale

A manufacturing company had been under pressure to increase profits, so it began to produce additional goods. The company was encouraged by the initial increases in revenue, even though profits per item produced were lower than average. Still, total profits increased, so the company decided to make another significant increase in production. This time, however, the profit per item had decreased so much that the company made almost no extra profit from the increase in production. This situation illustrates what concept?

Law of diminishing returns

Which of the following has the potential to increase productivity most dramatically?

New technology

What idea measures the amount of goods that can be produced compared to the amount of resources that are invested in producing them?

Productivity

What is division of labor?

another name for specialization, this is when an individual focuses on one specific skill in the field.