4.1 Production And Productivity

Question 1

What is production?

Answer 1

-Production converts inputs, such as the services of factors of production from capital and labour, into a final output.

-This will satisfy consumer needs and wants.

Question 2

What is productivity calculated by?

Answer 2

-calculated by output per worker per period of timer.

Question 3

What is productivity?

Answer 3

-refers to how much output can be produced with a given set of inputs

Question 4

What is the impact of being more productive?

Answer 4

-Being more productive means the same input, (such as the number of workers),
produces more output, over the same period of time.

-also lowers average costs per unit of output.

Question 5

What is the impact of being less productive?

Answer 5

-Being less productive requires a larger input to produce the same quantity of output.

Question 6

How can productivity be increased?

Answer 6

-by training workers or using more advanced capital machinery.