44. The American economy is now characterized as a(n) economy.
a. industrial
b. centralized
c. service
d. stagnant
e. bureaucratic
45. Today approximately percent of American workers are employed in service industries.
a. 28
b. 47
c. 87
d. 90
e. 94
46. Services differ from manufactured goods in all of the following ways except
a. services are consumed immediately.
b. when compared to manufactured goods, customers will not travel as far to purchase services.
c. the creation of services is usually labor-intensive.
d. services can be stored, and manufactured goods cannot be stored.
e. services are intangible, and it is therefore more difficult to measure customer satisfaction.
47. One primary difference between services and the production of goods is that services are consumed whereas
goods can be .
a. one at a time; consumed more than one at a time
b. immediately; stored
c. intangibly; tangible or intangible
d. later; consumed now
e. as they are produced; special ordered
48. In many cases, customers will travel farther to purchase a(n) than they would travel to purchase a(n) .
a. service; good
b. inexpensive good; expensive good
c. product; good
d. good; service
e. inexpensive service; expensive good
49. Most of the goods and services that we enjoy today can be traced back to an invention or idea that was the result
of
a. customer service representatives.
b. research and development.
c. a whim.
d. financial management.
e. a hunch.
50. A set of activities intended to identify new ideas and technical advances that may result in new goods and services
is called
a. research and development.
b. operations management.
c. design planning.
d. product design.
e. horizon planning.
51. R&D activities aimed at disclosing new knowledge that has some potential use are known as
a. development and implementation.
b. applied research.
c. basic research.
d. product design.
e. design planning.
52. 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
a. basic research.
b. applied research.
c. development and implementation.
d. a lack of research.
e. underfunded research projects.
53. A group of design engineers for Ford Motor Company spends two months of 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
a. applied research.
b. product design.
c. basic research.
d. design planning.
e. horizon planning.
54. 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
a. development and implementation.
b. research for product life cycles.
c. applied research.
d. academic research and development.
e. basic research.
55. A team of engineers at General Motors is in charge of discovering new knowledge that can be used to make
automobiles safer and more economical. These engineers are conducting
a. basic research.
b. research and development.
c. applied research.
d. product development.
e. research and implementation.
56. Research activities undertaken to put new or existing knowledge to use in producing goods and services are called
a. development and implementation.
b. applied research.
c. basic research.
d. design planning.
e. product design.
57. Needles, Inc. has five of its ten products at the end of the product life cycle. To maintain its market share, the firm
must at least find ways to
a. reduce the cost of marketing its products.
b. cut manufacturing costs.
c. extend or refine the want-satisfying capability of its products.
d. reduce the number of employees.
e. increase the price of the product.
58. The television has undergone a large number of changes since its introduction. For example, Sony now produces
not only color televisions but also such innovative products as televisions that include video equipment. This sort of
product evolution is referred to as product
a. extension.
b. design planning.
c. differentiation.
d. integration.
e. expansion.
59. Kraft Foods began producing Jell-O over sixty years ago, and the product continues to be profitable. All of the
following are methods Kraft Foods has probably used to lengthen Jell–O’s product life cycle except
a. product refinement.
b. advertising and promotion.
c. product integration.
d. research and development.
e. product extension.
60. Product extension and refinement
a. shorten the product life cycle.
b. extend the product life cycle.
c. are too costly for most firms.
d. take place during basic research.
e. end the product life cycle.
61. When Panasonic improves the sound, clarity, and ease of operation offered by its DVD player, it is
a. shortening its product life cycle.
b. extending its basic research.
c. redistributing its product.
d. refining its existing product.
e. reducing the DVD player’s functionality.
62. When Nabisco introduces Oreos with half chocolate and half peanut butter cream in the middle, it is
line.
a. refining
b. implementing
c. extending
d. heavily advertising
e. applying
63. What portion of the ideas for new products, refinements, and extensions ever gets to the production stage?
a. About one-third
b. At least half
c. The majority
d. Only a few
e. About two-thirds
its Oreos
64. Purina has a new product idea to create a cat food that will give cats more energy and allow them to live longer.
Management appoints a team to convert this cat food idea into an actual product. This process is called
a. design planning.
b. process engineering.
c. operational planning.
d. product lining.
e. product refining.
65. The development of a plan for converting a product idea into an actual product is called
a. design planning.
b. research and development.
c. product design.
d. operational planning.
e. planning horizon.
66. When Dell decided to produce and market an affordable personal computer, it had to consider a number of issues:
what the computer would look like, where and how it would be produced, what options it would include, and so on.
Supplying answers to these questions is part of
a. operational planning.
b. basic research.
c. applied research.
d. design planning.
e. scheduling.
67. A group of similar products that differ only in relatively minor characteristics is called
a. inventory.
b. a product line.
c. product design.
d. design planning.
e. inventory control.
68. In deciding on a product line, managers should balance and product requirements.
a. convenience goods
b. specialty goods
c. customer preferences
d. demographics
e. last year’s sales
69. During the design planning stage for its new appliances, Torr, Inc. needs to determine how many different product
variations there will be. This is the same as determining the product
a. features.
b. life cycles.
c. line.
d. prices.
e. availability.
70. Because customer preferences must be considered, play an important role in product-line decisions.
a. marketing managers
b. production managers
c. human resources managers
d. financial managers
e. first–line supervisors
71. When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is
deciding its
a. capacity.
b. design planning.
c. product design.
d. product life cycle.
e. product line.
72. The process of creating a set of specifications from which the product can be produced is called
a. technology.
b. research and development.
c. design planning.
d. product design.
e. a product line.
73. An industrial company contacts Caterpillar to design a specific type of equipment for use in its manufacturing
facility. If Caterpillar accepts this offer, the two companies will have to create a set of specifications from which
the product can be made. This process is called
a. a product line.
b. development and implementation.
c. design planning.
d. product design.
e. capacity planning.
74. The amount of products or services an organization can produce in a given time is known as
a. a product line.
b. design planning.
c. production.
d. lead time.
e. capacity.
75. To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing
managers for Hard Rock Cafe worked together to determine the restaurant’s .
a. capacity.
b. product line.
c. required annual sales.
d. lead time.
e. production flow.
76. The number of customers that an Outback Steakhouse can serve at one time is the restaurant’s
a. capacity.
b. product line.
c. scope.
d. size.
e. service refinement.
77. A doctor’s office allows thirty minutes for each appointment. After taking a one–hour lunch break, the doctor’s
office has a(n) of sixteen patients a day if it is open from 8:00 a.m. to 5:00 p.m.
a. operating maximum
b. service line
c. capacity
d. labor availability
e. service plan
78. Technology that is characterized by low initial costs and high operating costs is termed
a. a quality circle.
b. capital-intensive.
c. an industrial installation.
d. labor-intensive.
e. a process layout.
79. A situation in which people do most of the work is called
a. a quality circle.
b. quality control.
c. design planning.
d. a labor-intensive technology.
e. a capital–intensive technology.
80. At a Schlage Lock factory, many employees are needed to use tiny screwdrivers and other tools to carefully
assemble the inner workings of door knobs and locks. They must sit at a station and look through a magnifying glass
to complete this work. This production process could best be described as
a. labor-intensive technology.
b. highly automated.
c. capital–intensive technology.
d. high capacity.
e. refined product design.
81. Technology that is characterized by high initial costs and low operating costs is termed
a. a quality circle.
b. capital-intensive.
c. an industrial installation.
d. labor-intensive.
e. a process layout.
82. A situation in which machines and equipment do most of the work is known as
a. high technology.
b. quality control.
c. a labor–intensive technology.
d. an industrial installation.
e. a capital–intensive technology.
83. The choice of a particular location for production facilities
a. depends solely on the transportation costs from suppliers.
b. depends entirely on the availability of skilled and unskilled workers.
c. is based entirely on the geographic locations of suppliers of parts.
d. depends mainly on the arrangement of machinery, equipment, and personnel.
e. often involves balancing the variables.