4.1.4.1 Production and productivity

Question 1

Define production

Answer 1

use of FOP e.g capital and labour to convert raw materials (inputs) into outputs

Question 2

How is output used and what does it mean

Answer 2

broadly

anything that can be consumed

Question 3

What are the different types of output

Answer 3

consumer durable goods

non consumer durable goods

Question 4

Define consumer durable good

Answer 4

things expected to last more than three years e.g car

Question 5

Define non consumer durable goods

Answer 5

things consumed soon after purchase e.g food

Question 6

Define Productivity

Answer 6

a measure of the efficieny of production, how many units of output are produced per unit of input

Question 7

What is Labour Produtivity

Answer 7

output( in a time period)/ number of workers
or
output/labour hours

Question 8

What is Labour Productivity useful as

Answer 8

an economic indicator

Question 9

Why is Labour Productivity useful as an economic indicator

Answer 9

shows how well/efficiently an economy works

captures information about the skills and effort levels of the working population

Question 10

What is a key thing about Productivity

Answer 10

Not inclusive to labour can take into account other CELL

Question 11

Describe the level of difficulty there is to work out productivity for manufactured goods

Answer 11

easy

Question 12

Describe the level of difficulty there is to work out productivity for services

Answer 12

hard but dependent on the type of service

e.g hairdresser can quantify service through measuring the number of haircuts she gives out in a day

but difficult for a teacher to quantify their output