Lesson 7 - Productivity

Question 1

What the first reason why productivity matters?

Answer 1

Greater productivity leads to higher wages

Question 2

Give the second reason why productivity matters?

Answer 2

Rising labour productivity helps to keep costs and inflation low.

Question 3

Give the third reason why productivity matters?

Answer 3

International competitiveness- rising labour productivity lowers UK good prices making our exports more competitive

Question 4

Give a forth reason why productivity matters?

Answer 4

Economic growth, rising labour productivity is a key factor in determining economic growth. Improvements in labour productivity enable firms to produce more for lower costs

Question 5

Give a way that is often used to improve labour productivity?

Answer 5

Improving the morale of the workforce

Question 6

Give another way that labour productivity can be improved?

Answer 6

Technological progress - investment into research and development.

Question 7

Give another way that labour productivity can be improved?

Answer 7

Substitution of labour to capital

Question 8

Give a forth way that can be used to improve labour productivity?

Answer 8

Specialisation

Question 9

Give a fifth way that labour productivity can be improved?

Answer 9

Skills and qualification of the workforce

Question 10

What is the sixth way that labour productivity can be improved?

Answer 10

Improving worker experience