PRODUCTION AND LOCATION
1. State and explain FOUR kinds of economy of large scale production. Why do companies seek to obtain
Economies of Scale?
2. Why has the Government decide to make some areas of the UK 'Development Areas'?
3. What are the advantages to a firm of setting up in a Development Area.
4. Explain the advantages and disadvantages of the following methods of
Job Batch Flow
5. What factors might affect the location of a business?
6. Explain how automating the process of production might help a firm.
7. Why might good road and rail communication be important to some firms?
8. What would be the advantages of a furniture manufacturer merging with a furniture retailer?
9. State TWO problems and TWO advantages which might occur as a result of an increase in the number of
businesses in an area.
1O. Give a definition for each of the 3 sectors of economic activity.
11. To which sector of the economy do the following belong?
A company making videos a pop singer a manufacturer of shop
A Bank fittings maintenance engineer sausage
potato grower maker
12. What are the advantages and disadvantages of a firm specialising in the production of one particular
13. Why do firms undertake Research & Development?
14. What is a Social Cost and Benefit Analysis? Give an example of the type of project for which a Social Cost
and Benefit Analysis may be carried out.
15. Explain 2 possible Social Costs to the local community when a firm moves out of an area.
16. How does the local economy benefit when a large local employer receives a new order and or reports
17. Under what circumstances can employment in the Secondary Sector of the economy fall when output is
18. Why are profits so important in a market economy.
19. Opportunity costs are the loss of the next best alternative. State TWO Opportunity Costs for someone
setting up his/her own business.
20. How does the Government encourage businesses to relocate?
21. State two reasons why tertiary industry has increased in importance in the UK in recent years.
22. What are the impacts of firms increasing the use of technology they use to produce goods or services?
23. How do primary, secondary and tertiary businesses depend on each other?
24. What is an Enterprise Zone? What are the advantages to a firm of locating in an Enterprise Zone.
25. Why are out of town developments often chosen by supermarkets?
26. Why do some manufacturers deliver goods directly to customers without using a wholesaler? What are
the advantages and disadvantages to both the manufacturer and consumer?
27. What problems do businesses have if suppliers deliver goods 1ate?
28. Shona and David buy some stock from a wholesaler. Two services that a wholesaler provides are:
A A delivery Service
B Trade credit which allows them to pay for goods in 3 months time
i) Explain how each of the above make help David and Shona.
ii) State and explain one advantage that David and Shona may get from
buying directly from a manufacturer.
29. Sate and explain one reason for the decline of secondary occupations.
30. Explain two ways in which a company might respond to the needs of local people and/or environmental
issues when planning a new factory.
31. What are the names given to each of the following methods of production detailed below:
i) The firm makes a number of products of one kind and then switches production to make a
number of products of a different kind.
ii) The firm makes a single item with workers working on it from the beginning of the production
until the product is finished.
iii) The firm makes large numbers of a product, usually in a production
line, where partly assembled goods pass workers who complete a part of the production process.
32. What are the main reasons for changes in the level of employment in the Tertiary Sector of the economy?
33. Name one kind of manufacturing where flow production is more likely to be used.
34. Explain 2 factors the directors of a firm would need to take into
consideration when choosing the location of a new hotel.
35. Explain one advantage and one disadvantage to the local community when a firm decides to relocate there.
36. Explain 2 economies of scale which a firm may hope to gain through a merger.
37. State and explain two ways in which a business might gain from economies of scale when using batch