Grade 10 Business Studies โ Production (12 Lessons) Quiz
1. What is production in a business context?
Production is the process of transforming inputs (land, labour, capital, entrepreneurship) into goods and services for use or sale.
2. Which of the following is NOT a factor of production?
Factors of production are land, labour, capital and entrepreneurship. Marketing is a business function, not a basic production factor.
3. Which activity is an example of primary production?
Primary production involves extraction or harvesting of natural resources, such as farming, fishing or mining.
4. Which activity best illustrates the secondary sector of the economy?
The secondary sector transforms raw materials into finished goods or constructed outputs, for example construction and manufacturing.
5. Which of these is an example of a tertiary (service) activity?
The tertiary sector provides services rather than producing tangible goods, examples include banking, education and transport.
6. A business that relies mainly on many workers and little machinery is described as:
Labour-intensive production relies on human workers more than machines; capital-intensive uses more machinery and equipment.
7. How does division of labour increase productivity?
Division of labour assigns specific tasks to workers so they become skilled and quicker at those tasks, raising output per worker.
8. What is the break-even point for a business?
The break-even point is where a firm's income just covers all costs, so profit is zero.
9. What are economies of scale?
Economies of scale occur when increasing production spreads fixed costs over more units, reducing average cost per unit.
10. What does the Just-in-Time (JIT) inventory system aim to do?
JIT reduces holding costs and waste by scheduling supplies to arrive exactly when required in production.
11. What is the main purpose of quality control in production?
Quality control inspects products to detect defects and ensure they meet the required specifications before sale.
12. Which statement best describes lean production?
Lean production focuses on removing non-value activities (waste) to make production faster and cheaper without reducing quality.
13. Which of the following is a capital good?
Capital goods are tools or equipment used to produce other goods and services, such as machines and buildings.
14. Which cost is an example of a fixed cost for a business?
Fixed costs do not change with output level in the short run; rent remains the same whether production is high or low.
15. Which of the following is a variable cost?
Variable costs change with the level of production; more output requires more raw materials, increasing cost.
16. How is productivity commonly measured in production?
Productivity often measures the amount produced per worker (or per hour) to assess efficiency.
17. Which action is most likely to increase labour productivity in a Kenyan factory?
Training and improved tools enhance workers' skills and efficiency, raising output per worker.
18. Which plant layout groups similar machines or functions together?
A process layout places similar machines together (e.g., all lathes in one area) and is useful for varied products and job production.
19. What does outsourcing mean for a business?
Outsourcing is delegating tasks (like cleaning, IT, or payroll) to external specialists to save cost or gain expertise.
20. A factory has fixed costs of Ksh 1,000. Each unit sells for Ksh 50 and variable cost per unit is Ksh 30. How many units must be sold to break even?
Break-even units = Fixed costs รท (Price โ Variable cost) = 1000 รท (50 โ 30) = 1000 รท 20 = 50 units.
21. What is depreciation in relation to fixed assets?
Depreciation allocates the cost of a fixed asset over its useful life as it loses value from wear and tear.
22. Which example best describes job production?
Job production produces customised, one-off items to meet a specific customer's requirements.
23. Which activity describes quality control rather than quality assurance?
Quality control involves checking finished products for defects; quality assurance focuses on preventing defects through systems and processes.
24. What is meant by the supply chain of a product?
The supply chain includes suppliers, manufacturers, transporters, warehouses and retailers that move a product from raw material to consumer.
25. Which practice helps reduce the environmental impact of production?
Using renewable energy and recycling reduces pollution and resource depletion, helping production become more sustainable.