In the context of economics, what does 'one hundred percent inspection' refer to?

• A. Using automated machines to produce goods without any inspection.
• B. Relying solely on customer feedback to assess product quality.
• C. Inspecting only a random sample of products to estimate overall quality.
• D. Examining every single unit of a product or service for quality or compliance.

Answer: (D)

Verified step by step guidance

1. Understand that 'one hundred percent inspection' in economics and quality control refers to the process of examining every single unit of a product or service to ensure it meets quality standards or compliance requirements.
2. Recognize that this method contrasts with sampling inspection, where only a subset of products is checked to infer the quality of the entire batch.
3. Note that one hundred percent inspection aims to eliminate defects by checking all units, but it can be costly and time-consuming compared to sampling methods.
4. Identify that this approach is often used in situations where the cost of defects is very high or where regulations require complete verification.
5. Summarize that 'one hundred percent inspection' means a thorough examination of every product unit, rather than relying on automated production without inspection, customer feedback, or random sampling.