Lesson 8.6.1

8.6.1 Productivity Quiz: OCR Business, Unit 8

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 8.6.1, Productivity: 20 multiple choice questions for the OCR Business (H431), Unit 8: Operations, written with Revision Ninja.

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The 20 questions

  1. What is the standard formula used to calculate labour productivity in a business?

    • Output / Workers
    • Output / Capacity
    • Costs / Output
    • Revenue / Workers

  2. What effect does higher labour productivity usually have on unit costs of production?

    • Increases unit costs
    • No cost effect
    • Reduces unit costs
    • Increases fixed costs

  3. A factory produces 5,000 items per week using 20 workers. What is the labour productivity per worker?

    • 250 units
    • 100 units
    • 200 units
    • 25 units

  4. Which action is most likely to improve labour productivity in a manufacturing firm?

    • Increasing prices
    • Workforce training
    • Increasing rent
    • Reducing stock

  5. How is capacity utilisation calculated for a production plant?

    • Actual output / Capacity
    • Capacity / Actual output
    • Output / Workers
    • Sales / Cost

  6. A hotel with 200 rooms has 160 rooms booked tonight. What is its capacity utilisation?

    • 80%
    • 20%
    • 75%
    • 85%

  7. What risk is associated with operating a factory at 100% capacity utilisation continuously?

    • Lower fixed costs
    • Excess buffer stock
    • Underused labour
    • Machine breakdowns

  8. What is a primary negative consequence of low capacity utilisation in a factory?

    • Low fixed costs
    • Equipment failure
    • Excess labour strain
    • High unit costs

  9. What happens to average costs as output increases due to economies of scale?

    • Average costs rise
    • Total costs fall
    • Marginal revenue falls
    • Average costs fall

  10. Which type of economy of scale occurs when buying raw materials in bulk?

    • Financial economy
    • Technical economy
    • Purchasing economy
    • Managerial economy

  11. A firm buys large specialised machinery to reduce unit costs. Which economy of scale is this?

    • Technical economy
    • Risk-bearing economy
    • Marketing economy
    • Managerial economy

  12. Which issue is a major cause of internal diseconomies of scale in large businesses?

    • Lower interest rates
    • Poor communication
    • Specialist management
    • Bulk purchasing

  13. Which factor causes external economies of scale for all firms in a specific region?

    • Better software
    • Firm bulk buying
    • Local skilled labour
    • Internal delegation

  14. What is the main purpose of maintaining a buffer stock in a business warehouse?

    • Eliminate lead time
    • Prevent stockouts
    • Increase unit price
    • Reduce holding costs

  15. In stock control management, what does the term lead time describe?

    • Order to delivery
    • Manufacturing time
    • Payment time
    • Storage time

  16. A firm uses 50 units daily and supplier lead time is 4 days. What is the reorder level?

    • 12.5 units
    • 150 units
    • 200 units
    • 54 units

  17. What is a core requirement for operating a successful Just-in-Time stock system?

    • High buffer stock
    • Large warehouse
    • Reliable suppliers
    • Low capacity utilisation

  18. Which visual scheduling tool is commonly used in JIT systems to signal reordering?

    • Decision tree
    • Kanban card
    • Gantt chart
    • Break-even chart

  19. Which two competing costs does the Economic Order Quantity model balance?

    • Holding and ordering
    • Production and sales
    • Fixed and variable
    • Labour and capital

  20. Which symptom suggests that a growing firm is experiencing internal diseconomies of scale?

    • Lower average costs
    • Higher profit margin
    • Lower morale
    • Faster decisions

All OCR Business quizzes