Multiple Choice
Which term describes the assignment of a specific resource to a specific task in the production process?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following business activities has the most long-term impact on production?
A
Hiring temporary workers
B
Reducing inventory levels
C
Increasing advertising expenditure
D
Investing in new machinery and technology
Verified step by step guidance1
Understand the concept of long-term impact on production: Long-term impact refers to changes that affect the productive capacity of a business over an extended period, rather than just immediate or short-term effects.
Analyze each option in terms of its effect on production capacity: Hiring temporary workers and reducing inventory levels typically influence short-term operations and flexibility but do not change the fundamental ability to produce more goods or services.
Consider increasing advertising expenditure: While advertising can increase demand, it does not directly increase the production capacity or efficiency of the business in the long run.
Focus on investing in new machinery and technology: This activity directly enhances the production capacity by improving efficiency, increasing output, or enabling new products, which has a lasting effect on the business's ability to produce.
Conclude that among the options, investing in new machinery and technology has the most significant long-term impact on production because it changes the productive resources and capabilities of the firm.
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