ZIMSEC O Level Commerce Production questions

Question 1

Which of the following contributes to the satisfaction of human wants?

Accepted Answer

goods and services

Question 2

A commercial worker

Accepted Answer

provides services.

Question 3

The effort to organise, co-ordinate and control other factors of production is referred to as

Accepted Answer

enterprise.

Question 4

Which is not an advantage of division of labour?

Accepted Answer

reducing boredom

Question 5

What are the three stages in production?

Accepted Answer

extraction, manufacturing and distribution

Question 6

What is a disadvantage of direct production?

Accepted Answer

The quantity of goods produced is low.

Question 7

The second stage in the production of goods is

Accepted Answer

manufacturing.

Question 8

In Commerce, goods are usually classified into

Accepted Answer

producer goods and consumer goods.

Question 9

The manufacturer's risks are increased if goods are produced

Accepted Answer

in anticipation of demand.

Question 10

What are the three stages of production?

Accepted Answer

manufacturing, extraction and distribution

Question 11

Which one is a result of specialisation?

Accepted Answer

higher levels of production

Question 12

What is production, as commonly defined in Commerce?

Accepted Answer

The making of goods and the provision of services to satisfy wants and needs

Question 13

Direct production occurs when...

Accepted Answer

People produce for their own consumption, e.g. subsistence farming

Question 14

Secondary industry involves...

Accepted Answer

Converting raw materials into semi-finished and finished products, e.g. manufacturing

Question 15

How does banking assist an exporter of tobacco?

Accepted Answer

By providing a current account, safe custody of documents, and finance such as loans

Question 16

Secondary production is...

Accepted Answer

Converting raw materials into finished or semi-finished goods, e.g. manufacturing or construction

Question 17

Which of the following is an advantage of mass production?

Accepted Answer

It lowers the cost of production per unit and increases availability of goods

Production Questions and Answers