Principles of Business for CSEC®

2nd edition

Chapter 5: Production
The following test paper contains four multiple-choice questions, to help you prepare for
Paper 1, and one essay question, to help you prepare for Paper 2. If you decide to complete the
paper under exam conditions, you should give yourself no longer than 30 minutes to complete all
questions.

1. Which Caribbean country would you associate with the production of oil, rice and metals?
(A) Jamaica
(B) Barbados
(C) Guyana
(D) Trinidad and Tobago
(1 mark)

2. If production has increased in a country but productivity has fallen, this would mean that:
(A) The country is maintaining the effectiveness of its industries
(B) The country is producing a smaller volume of goods
(C) Output per unit of input is falling
(D) The country is making even better use of its productive resources
(1 mark)

3. Which of the following is most likely to lead to an improvement in labour productivity?

(A) Employing fewer machines to work alongside labour
(B) Reducing the amount spent on training workers
(C) The development of a more positive work ethic
(D) The employment of more unskilled workers
(1 mark)

4. Lean production principally involves:

(A) Minimising or eliminating wasteful activities from production
(B) Seeking to find ways of reducing the costs of manufacture
(C) Producing goods just with labour rather than machinery
(D) Employing automated manufacturing techniques
(1 mark)

1 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 5: Production

5. (a) List four (4) factors of production.


(4 marks)

(b) Outline two (2) functions of a small business.


(4 marks)

(c) Describe two (2) characteristics of a cottage industry.

2 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
Chapter 5: Production


(4 marks)
(d) List two (2) advantages and two (2) disadvantages of a small business.


(4 marks)

(e) Explain two (2) ways in which a business grows internally.


(4 marks)

(24 marks)

3 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019