Production and Productivity Flashcards
1
Q
What does productivity mean?
A
the amount of output per factor in a specific amount of time
2
Q
What does labour productivity mean?
A
the amount of output per worker in a specific amount of time
3
Q
What is meaning of production?
A
the amount of output produced
4
Q
what happens when productivity rises?
A
- higher wages are available
- increased output for the economy
- lower prices
5
Q
How can firms increase productivity?
A
- better tech
- motivation for workers
- specialisation and division of labour
- training of workers
- increased capital
- more competitive markets
6
Q
Why might firms place less emphasis on productivity?
A
- low wages
- expensive capital
- low demand
