Manufacturing an item before it is needed is an example of what form of waste in economics?

• A. Overproduction
• B. Underutilization
• C. Idle resources
• D. Defective production

Answer: (A)

Verified step by step guidance

1. Understand the concept of waste in economics, which refers to the inefficient use of resources that do not add value to the final product or service.
2. Identify the specific type of waste described: manufacturing an item before it is needed means producing more than the immediate demand requires.
3. Recall that overproduction is defined as producing goods in excess of demand or before they are needed, leading to excess inventory and increased holding costs.
4. Compare the other options: underutilization refers to not using resources fully, idle resources are resources not being used at all, and defective production involves producing faulty goods.
5. Conclude that manufacturing items before they are needed fits the definition of overproduction, which is a key form of waste in economic production processes.