OCR GCSE Economics (J205): Production, the labour market and money overview quiz quiz

They mean exactly the same thing and the two terms can be swapped freely

Production is output per worker; productivity is the total output that is made

Production is total output; productivity is output per worker or per hour

Production is only about services, while productivity is only about goods

Workers become much more skilled at their own particular task

Training the workers becomes quicker and a great deal cheaper

The output produced per worker steadily increases over time

Repetitive work can become boring and lower motivation

fixed costs plus variable costs

the variable costs of the firm only

the selling price times the quantity sold

total revenue minus the firm's profit

£1,800

£600

£1,200

£300

total cost multiplied by quantity

price minus cost

total cost divided by quantity

fixed cost divided by variable cost

total cost falls

revenue always rises

fixed costs disappear

average cost falls

demand workers in order to produce goods and services that earn money

always want to take on as few workers as they can possibly manage with

are legally required to pay every worker at least the national minimum wage

would always rather use machines than workers wherever they possibly can

Surgeons always work very much longer hours each week than cleaners do

The supply of surgeons is low (long training) while demand is high

Cleaning is not seen as a real or proper job by most employers

The government directly sets the wages that all surgeons are paid

Acting as a factor of production

Acting as a tax on spending

Acting as a medium of exchange

Acting as a subsidy to firms

the existence of taxes charged on spending

the worldwide shortage of natural resources

the high cost of actually producing goods

the need for a double coincidence of wants

To channel savings into borrowing and investment

To keep all of the deposits locked away safely and never lend them out

To set the level of taxation that households and firms have to pay

To produce goods themselves to be sold for export to other countries

It must be heavy

It must be scarce

It must be perishable

It must be free