IGCSE Economics Paper-2: Specimen Questions with Answers 50 - 50 of 100

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Passage

Setting prices of the product is difficult. Too high prices can lead to reduction in sales.

Question 50 (4 of 5 Based on Passage)

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Short Answer▾

what are the methods of producing goods and services?

Explanation

Various Methods of Producing Goods and Services

There are various methods of producing goods and services. They are as follows:

  • Job production: Job production means the production of single or an individual item. For example, a car producer might get an order to manufacture, or a hairstylist styling for one person. In case of job Firms specialize in producing one job such as customized motor bikes.
  • Batch production: Means the production of similar products in different. For example, a baker producing batches of cookies, doughnuts, buns, and eggless cakes etc.
  • Flow production: In flow production the parts of the product in a flow are passed from one stage of production to another stage. In each stage a component is added to the products. For example- In a modern bottling plant used by mineral water bottle production company.
  • Mass production: It produces the products on a large scale. It may sometimes involve flow production, but there is only one stage in the process of production. Products produced using the mass production technique are-bottling plant e. g. Pepsi, car manufacturing e. g. BMW, printing e. g. Polestar.

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