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Exam Practice

Jonah works as a joiner building houses but also makes wooden toys in his spare time. The wooden toys business has been so successful that Jonah decides to leave his job and set up his own toy-making business. Company X manufactures pottery products like plates and bowls for hotels and restaurants. Each of its 50 workers specializes in one of the nine production processes. The marketing manager is looking for ways to add value to the company's products.

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3K views2 pages

Exam Practice

Jonah works as a joiner building houses but also makes wooden toys in his spare time. The wooden toys business has been so successful that Jonah decides to leave his job and set up his own toy-making business. Company X manufactures pottery products like plates and bowls for hotels and restaurants. Each of its 50 workers specializes in one of the nine production processes. The marketing manager is looking for ways to add value to the company's products.

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Copyright
© © All Rights Reserved
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Exam practice questions

1.Jonah is employed as a joiner by a firm whose main business activity is building houses. The
firm also employs bricklayers lumbers, painters and other skilled tradesmen, Other factors of
production are used when building houses. The owner of the firm, Jack, believes that
specialization of labour brings many benefits to the business and its workers

In his spare time Jonah makes wooden toys which his sister sells on her stall at the local market.
He buys the wood and other resources from a local supplier. The wooden toys have been so
successful that Jonah has decided to leave his job as a joiner to set up his own toy-making
business

a Identify two stages of business activity.

1.building houses

2.toy-making business

b What is meant by factors of production?

Land labour capital enterprise，the resources needed to produce goods and services.

c Using the information in the case study, explain the meaning of opportunity cost 4

Jonah choose alternative toy-making business instead of building houses job，so the opportunity
cost is the building houses job，he devoted all his energies to his business

d identify and explain two ways Jonah could add value to his toys

1.Handmaking toy

2.Local raw material

e Do you agree with Jack that 'specialization of labour brings many benefits to the business and
its workers? Justify your answer 6

Yes, specialization brings the business better quality, better quality brings public praise，they will
get more customer，and also when workers doing their job they could be more professional and
skilled.

2.Company X is a manufacturer of pottery products, such as plates and bowls, which are mainly
sold to hotels and restaurants. The company employs 50 workers. Each worker receives a good
wage and this helps them to meet their needs. Production is broken down into nine processes.
Workers specialize in just one process. The Marketing Manager of Company X has been

asked by the directors to look at ways of adding value to the company's products.

a Identify two factors of production

Labour

Enterprise

b What is meant by’ needs?

good or services that is necessary and essential to living.

c Using the information in the case study, explain the meaning of 'specialization

Production of pottery is broken down into nine processes. Workers specialize in just one process.
Each worker just need to do one specific job and what they beat at.

d Identify and explain two stages of Company X’s production process

1.production:produce product

2.adding value: let product being more valuable

e Suggest two ways the marketing manager might increase Company X's added value

Justify your answer

1.product features ：can add product characteristics, for example, high temperature resistance,
more robust

2.Branding: branding is very important for adding value

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