Pearson Edexcel IGCSE · Commerce

Production: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Production.

10 questions25 marksFree, no account

Question 1

1 mark

Which factor of production includes the physical and mental effort used by human beings in the commercial process of creating goods and services?

Question 2

1 mark

In the chain of production, a business that extracts iron ore from the ground is operating in the:

Question 3

1 mark

A company transitions from a craft-based system to a system of specialisation and division of labour. Which of the following is the most likely impact on the firm's unit costs and its interdependence on other businesses?

Question 4

1 mark

Which of the following describes the situation where a business or an individual concentrates on a specific task or a narrow range of goods to increase efficiency?

Question 5

1 mark

The division of labour can lead to increased productivity for a firm. What is a common disadvantage for the workers involved in this process?

Question 6

2 marks

State the two primary forms that production can take within a commercial environment.

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Question 7

4 marks

Identify two factors of production and provide a specific example of how each is used in the manufacture of goods.

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Question 8

5 marks

Explain how the division of labour can lead to a greater need for commerce between different regions.

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Question 9

5 marks

A large-scale furniture manufacturer has recently introduced specialisation and the division of labour in its factory.

(a) Define the term division of labour. (1)
(b) State two ways in which the division of labour can increase the productivity of a firm. (2)
(c) Why might specialisation lead to an increased need for commerce? (2)

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Question 10

4 marks

The chain of production involves the movement of goods through various stages before they reach the final consumer.

(a) Briefly describe the role of the secondary sector in this chain. (1)
(b) Explain two ways in which the tertiary sector supports the activities of the primary and secondary sectors. (2)
(c) Identify one example of a business that operates in the primary sector. (1)

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