Define goods and services.
Goods are tangible products that are used to satisfy customer's needs and wants. Services are intangible products that are used to satisfy customer's needs and wants.
What is production?
Production is the provision of a product or service to satisfy consumer wants and needs.
State the difference between production and productivity.
The main difference between production and productivity is that production entails effective management of resources used to provide goods and services, as well as the processes required to achieve this. Productivity, on the other hand, is a method of measuring production.
What are the benefits of increasing efficiency, and how can it be increased?
The benefits of increasing efficiency are as follows: *Reduced inputs needed for the same output level.• Lower costs per unit (average cost).• Fewer workers may be needed, possibly leading to lower wage costs.• Higher wages might now be paid to workers, which increases motivation. Efficiency can be increased in the following ways: improving employee motivation, improving quality assurance to reduce waste, improving inventory control, using automation, training employees to become more efficient, and introducing new technology.
How do you manage resources effectively to produce goods and services?
Combine the factors of production efficiently, in appropriate proportions, in order to keep costs low and increase profits.
Why do business hold inventories?
Business hold inventories in order to promptly meet demand as well as maintain production.
State and explain two main methods of production.
Job production and batch production. Job production is a form of production where products are made specifically to the customer's order. Batch production is a form of production where similar products are made in batches or blocks.