Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
JNK manufactures pottery such as plates and bowls for the mass market, and it does so by using batch production. Quality control matters. JNK employs 30 unskilled workers, all of whom are paid the legal minimum wage. To maintain motivation, JNK makes use of job enrichment. Because demand has risen, JNK is considering replacing its old machines with new technology. The Managing Director believes that some of the low cost materials bought by JNK may have been made using child labour. A competitor of JNK has lately brought in a new ethical policy.
(a)[2]
What does the term 'mass market' mean?
(b)[2]
What does the term 'job enrichment' mean?
(c)[4]
Identify and explain two ways in which employees at JNK could be affected by the introduction of new technology.
(d)[6]
Identify and explain two ways (other than new technology) that JNK could use to increase output.
(e)[6]
Do you think JNK should become more ethical? Support your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Selling the same product to the whole market / everyone” …