Question 1

A government-funded group of scientists is assigned to discover new knowledge and scientific advances. These scientists are not required to consider the potential use of this knowledge. This group is conducting

Accepted Answer

The given scenario describes a group of scientists who are conducting research without any consideration of its practical applications. This is characteristic of basic research, which aims to increase scientific knowledge and understanding without a specific goal of inventing or improving products or processes.

Question 2

Today approximately ____ percent of American workers are employed in service industries.

Accepted Answer

As of my last update in 2023, approximately 87 percent of American workers are employed in service industries, reflecting the significant shift from manufacturing to service-oriented jobs in the U.S. economy.

Question 3

When considering the conversion process, human resources in the form of hair stylists and cosmetologists are the ____ for a beauty salon.

Accepted Answer

In a beauty salon, the "focus" refers to the primary resource or element that is central to the conversion process. Hair stylists and cosmetologists are the key human resources that drive the service delivery in a beauty salon, making them the focus of the conversion process.

Question 4

In many cases, customers will travel farther to purchase a(n) ____ than they would travel to purchase a(n) ____.

Accepted Answer

Goods are usually physical objects that customers can see and touch. This makes them more tangible, and customers may be willing to travel a longer distance to purchase something that they can physically see and inspect before buying. Services, on the other hand, are intangible and cannot be physically inspected, meaning that customers may not be willing to travel as far. Therefore, the correct answer is D) good; service.

Question 5

A set of activities intended to identify new ideas and technical advances that may result in new goods and services is called

Accepted Answer

Research and development typically involves a set of activities aimed at identifying new ideas and technical advances that can result in new goods and services. The focus is on exploring innovative solutions and developing new technologies or processes that can be used to create new or improved products or services. Operations management relates more to the efficient management of production processes and resources, design planning involves the creation of specific plans for the design of products or services, product design is focused more specifically on the actual design process, and horizon planning is a broader term that encompasses various strategic planning activities.

Question 6

Tom's Toothpicks and Don's Doghouses both use lumber as the major input in their conversion processes. Although the input is the same for each factory, the ____ of the conversion process varies greatly between the two.

Accepted Answer

The magnitude of the conversion process refers to the scale or extent of the process. In this case, the magnitude of the conversion process varies greatly between Tom's Toothpicks and Don's Doghouses, even though they use the same input (lumber).

Question 7

A group of design engineers for Ford Motor Company spend two months in the summer in the Arizona desert researching fuel performance at extreme temperatures. Ford uses the results of these tests to improve the quality of its automobiles. The group of engineers is engaging in

Accepted Answer

The engineers are conducting research with a practical application in mind, which is to improve the quality of Ford's automobiles. This aligns with the definition of applied research.

Question 8

In a service industry such as a package carrier, the ____ of the conversion process is usually small or none at all.

Accepted Answer

The magnitude of the conversion process refers to the physical size or volume of the goods being transformed or transferred in the conversion process. In a service industry like a package carrier, there is usually no physical transformation or transfer of goods, so the magnitude is small or nonexistent.

Question 9

The American economy is now characterized as a(n) ____ economy.

Accepted Answer

The American economy has shifted from an industrial to a service-based economy, meaning that a majority of employment and output is generated by the service sector rather than manufacturing. This shift began in the 1980s and has continued to this day.

Question 10

Chevron and other refiners emphasize material resources in the conversion process. This implies that the material resources are the ____ of the conversion process.

Accepted Answer

Refiners like Chevron emphasize material resources in the conversion process, meaning that they put a lot of focus on these resources. Therefore, the best choice is E, "focus." The other options, such as catalyst (A), technology (B), output (C), and impetus (D), do not accurately describe the role of material resources in the conversion process.

Question 11

Scientists at R&E Labs worked for two years on a project to eventually add more knowledge to the science of photography. But in a meeting with the board of directors last week, they had nothing new to report. This is always a risk with

Accepted Answer

Basic research is focused on expanding knowledge without any specific application in mind. This type of research may not always result in immediate findings or applications, which makes it a riskier investment for companies seeking immediate results. Therefore, it is expected that the scientists at R&E Labs were conducting basic research, which explains why there was no new report after two years.

Question 12

Apple satisfies consumers' needs for powerful, lightweight, easy-to-use laptops by converting assorted software routines, hardware devices, and miscellaneous parts into portable computers. By doing this, Apple is creating

Accepted Answer

By creating powerful, lightweight, and easy-to-use laptops, Apple is adding form utility to the various hardware devices and parts used in the production process. The laptops satisfy consumers' needs for portable computing, making them more useful and valuable.

Question 13

The degree to which input resources are physically changed by the conversion is referred to as the

Accepted Answer

The term "magnitude of change" refers to the extent to which input resources are physically altered during the conversion process. This concept captures the degree of transformation that inputs undergo to become outputs.

Question 14

Services differ from manufactured goods in all of the following ways except

Accepted Answer

The statement "services can be stored, and manufactured goods cannot be stored" is incorrect. The reverse is actually true: manufactured goods can be stored and transported to the point of consumption, whereas services cannot be stored and require the provider and consumer to be in the same place at the same time. Therefore, option D stands out as the exception.

Question 15

R&D activities aimed at disclosing new knowledge that has some potential use are known as

Accepted Answer

Applied research is specifically focused on discovering new knowledge that has some practical or potential use. Basic research, on the other hand, is focused on expanding scientific understanding without necessarily having a specific practical application in mind. Development and implementation, product design, and design planning all involve applied knowledge but are not specifically aimed at discovering new knowledge through research.

Question 16

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.

Accepted Answer

Services are typically consumed immediately while goods can be stored for later use. This is one of the primary differences between the two types of products.

Question 17

An Illinois-based firm crushes materials to make gravel, its only product. The gravel company has

Accepted Answer

The firm's operation of crushing materials to make gravel indicates a straightforward production process, hence "few production processes" is correct.

Question 18

Ford produces a wide variety of vehicles for individuals, businesses, manufacturers, and even schools. It also operates its own financing division, Ford Motor Acceptance Corp. It seems as if Ford

Accepted Answer

The passage states that "Ford produces a wide variety of vehicles" and "even schools" which indicates that it has many production processes. Therefore, option D is the correct answer. Option A is incorrect as while Ford operates its own financing division, it is not the main focus of the business. Option B is incorrect as there is no information to suggest that Ford has a small magnitude. Option E is incorrect as Ford primarily produces vehicles, not services.

Question 19

Most of the goods and services that we enjoy today can be traced back to an invention or idea that was the result of

Accepted Answer

Research and development is the process of exploring and developing new ideas and products. Most of the goods and services we enjoy today are the result of research and development.

Question 20

Cisco Systems manufactures computer hardware, uses software programs, and provides networking services to customers. As a result, Cisco uses

Accepted Answer

Cisco Systems uses more than one production process because it is involved in manufacturing hardware, using software, and providing networking services, which require different production processes.

Quiz 8: Producing Quality Goods and Services