Productivity Flashcards
1
Q
What does productivity mean?
A
An important measure of productive efficiency
Describes how much input can be turned into products
2
Q
What are some ways to improve productivity?
A
Training
Improved motivation
More capital equipment
Better capital equipment
Better quality raw materials (reduces amount of time wasted on rejected products)
Improved organisation of production – e.g. less wastage
3
Q
What are economies of scale?
A
Economies of scale arise when unit costs fall as output increases
