Sample Quizzes For Preparation: Production
O Level and IGCSE Commerce – Chapter 1: Production
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
1. Which of the following best defines production?
A. Buying and selling goods and services
B. Creating goods and services to satisfy wants
C. Providing financial services to businesses
D. Transporting goods to the consumer
2. Which of the following is a primary industry?
A. Textile manufacturing
B. Mining
C. Insurance
D. Transport
3. Which sector of production involves converting raw materials into finished products?
A. Primary
B. Tertiary
C. Secondary
D. Direct services
4. Which of the following is a direct service?
A. Banking
B. Advertising
C. Hairdressing
D. Insurance
5. Which of the following best describes the chain of production?
A. The supply of money for production
B. The number of jobs in an economy
C. The stages a product passes through from raw material to consumer
D. The distribution of goods in a market
6. What is meant by the term ‘commerce’?
A. Only the act of buying and selling goods
B. Trade and all the aids to trade
C. The storage of raw materials
D. Government services
7. Which activity belongs to the tertiary sector?
A. Fishing
B. Steel production
C. Advertising
D. Oil extraction
8. What is the main purpose of specialisation?
A. To create more jobs in agriculture
B. To make trade more difficult
C. To increase efficiency and productivity
D. To make employees less skilled
9. Division of labour means:
A. All workers performing all tasks
B. Each worker specialising in one task
C. Sharing profits among workers
D. Giving workers complete independence
10. A possible disadvantage of division of labour is:
A. Increased motivation
B. Greater efficiency
C. Repetitive boredom
D. Skill development
11. Which of the following is an advantage of specialisation to the manufacturer?
A. Higher wages
B. Faster production and efficiency
C. Increased raw material cost
D. Less need for workers
12. Which of the following is NOT a function of commerce?
A. Transport
B. Insurance
C. Farming
D. Warehousing
13. Which of the following best defines trade?
A. The movement of goods within factories
B. The process of advertising products
C. The buying and selling of goods and services
D. The use of machines in production
14. Which of these helps commerce by enabling safe delivery of goods?
A. Banking
B. Advertising
C. Transport
D. Communication
15. What is the key difference between trade and commerce?
A. Trade is part of commerce
B. Commerce is part of trade
C. Trade includes all services
D. Commerce involves only selling
16. Which industry is involved in manufacturing?
A. Primary
B. Secondary
C. Tertiary
D. Direct
17. Which of the following is a tertiary activity?
A. Car production
B. Iron mining
C. Teaching
D. Building bridges
18. What is an economic advantage of international trade?
A. Less dependency on imports
B. Decrease in employment
C. Access to non-local goods
D. Higher tax on exports
19. A disadvantage of specialisation to a worker is:
A. Greater skill improvement
B. More variety in work
C. Reduced boredom
D. Limited task knowledge
20. A country highly dependent on farming is likely to be strong in which sector?
A. Primary
B. Secondary
C. Tertiary
D. Quaternary
21. Which aid to trade involves storing goods?
A. Banking
B. Warehousing
C. Insurance
D. Advertising
22. What is the role of advertising in commerce?
A. To store goods safely
B. To promote and inform about products
C. To package goods
D. To finance production
23. Which of these is a form of commercial service?
A. Building
B. Schooling
C. Transport
D. Farming
24. Which of the following sectors does a chef working in a restaurant belong to?
A. Primary
B. Secondary
C. Tertiary
D. Quinary
25. How does insurance support commerce?
A. By delivering goods
B. By providing funds
C. By protecting against risks
D. By informing customers
26. Which of these services helps move goods from producer to consumer?
A. Communication
B. Advertising
C. Transport
D. Warehousing
27. A country with high involvement in IT and banking is strong in which sector?
A. Primary
B. Secondary
C. Tertiary
D. Extractive
28. Which of the following is the best example of a direct service?
A. Education
B. Marketing
C. Retail
D. Manufacturing
29. The process of breaking production into small repetitive tasks is:
A. Batch production
B. Division of labour
C. Mass production
D. Manual processing
30. What is one key outcome of improved specialisation and division of labour in an economy?
A. Decreased production rate
B. Increased unemployment
C. Increased productivity
D. Lower quality of goods
Answer Key and Explanations
1. B. Creating goods and services to satisfy wants
→ Production refers to the creation of goods/services to fulfill human needs and wants.
2. B. Mining
→ Mining is a primary activity because it involves extracting natural resources.
3. C. Secondary
→ Secondary sector transforms raw materials into finished goods.
4. C. Hairdressing
→ Hairdressing is a personal service, classified under direct services.
5. C. The stages a product passes through from raw material to consumer
→ The chain of production follows a product’s journey from source to end user.
6. B. Trade and all the aids to trade
→ Commerce includes both trade and supporting activities like transport and finance.
7. C. Advertising
→ Advertising is a commercial service in the tertiary sector.
8. C. To increase efficiency and productivity
→ Specialisation allows individuals/firms to become highly efficient in one task.
9. B. Each worker specialising in one task
→ Division of labour splits the production process into specific, repetitive tasks.
10. C. Repetitive boredom
→ A common downside is monotony due to repetitive work.
11. B. Faster production and efficiency
→ Specialised tasks increase output and reduce production time.
12. C. Farming
→ Farming is a primary activity, not part of commerce.
13. C. The buying and selling of goods and services
→ Trade specifically refers to transactions involving goods and services.
14. C. Transport
→ Transport ensures goods move efficiently through the supply chain.
15. A. Trade is part of commerce
→ Commerce is the umbrella term, with trade being one component.
16. B. Secondary
→ Manufacturing belongs to the secondary sector.
17. C. Teaching
→ Teaching is a service-based activity, part of the tertiary sector.
18. C. Access to non-local goods
→ International trade provides goods not available domestically.
19. D. Limited task knowledge
→ Workers in specialised roles may have narrow skills.
20. A. Primary
→ Farming is part of the primary sector.
21. B. Warehousing
→ Warehousing provides storage before goods are sold or distributed.
22. B. To promote and inform about products
→ Advertising helps raise awareness and boosts sales.
23. C. Transport
→ Transport is a commercial service aiding trade.
24. C. Tertiary
→ Restaurant services are part of the tertiary sector.
25. C. By protecting against risks
→ Insurance helps businesses by covering losses from theft, fire, etc.
26. C. Transport
→ Essential for connecting producers with consumers.
27. C. Tertiary
→ Banking and IT are core parts of the service-oriented tertiary sector.
28. A. Education
→ Education is offered directly to the public as a personal/direct service.
29. B. Division of labour
→ Breaking production into small parts increases efficiency.
30. C. Increased productivity
→ More specialisation typically results in greater output and efficiency.