The Basic Reason the Term Production Management Has Been Replaced

question 250

Multiple Choice

The basic reason the term production management has been replaced by the term operations management is that:

• A) the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process.
• B) a much larger share of total output is being produced by nonprofit organizations.
• C) the United States is now a service economy.
• D) the United States now exports more than it imports.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices within a given period.

Economic Profit

The profit a firm makes after subtracting both its explicit (direct) and implicit (indirect or opportunity) costs from its total revenues.

Short-Run Data

Information or statistics collected over a brief period, often used to make immediate decisions or analyze short-term economic trends.

Industry Demand

The total demand for the products or services offered by a particular industry, reflecting the combined demand of all consumers in the market.