Productivity Flashcards
1
Q
What is labour productivity?
A
Measuring output per worker
Output per hours worked
2
Q
What is capital productivity?
A
Output per unit of capital
3
Q
What is total factor productivity?
A
The average productivity across all factors
4
Q
How is total factor productivity measured ?
A
The total output /
The amount of inputs
5
Q
Why is productivity important
A
An increase in the efficiency of inputs leads to an increase in the productive capacity and henceforth is a source of economic growth
6
Q
What is investment
A
An increase in the capital stock
7
Q
Depreciation
A
The fall in the value of physical capital equipment as it is subject to wear and tear
8
Q
What is net investment
A
Gross investment minus
Depreciation
9
Q
What is productivity?
A
It is measuring the efficiency of a factor of production
