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Ligma > Productivity > Flashcards

Productivity Flashcards

naaar phillis

1
Q

Productivity

A

Productivity is the practice of producing more output for the same or less of an input

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2
Q

Stat about productivity in the last 30 years

A

Has doubled but has become stagnant in the last 10 years

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3
Q

Working hours and productivity

A

Not about working longer hours, rather it is about making the most of the resources we have available

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4
Q

When does productivity grow

A

When we can produce more outputs for the same or fewer inputs

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5
Q

Measured sense of growth of productivity

A

Represents growth in outputs over growth of inputs

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6
Q

Equation for productivity

A

Output volume/input volume

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7
Q

2 ways to demonstrate productivity

A

ad/as and APF

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8
Q

5 positives of productivity growth

A

Efficiency

Supports consumption

Economic goals

Environment

International Competitiveness

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9
Q

Efficiency benefit

A

Improvement in the efficiency of resource use over time

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10
Q

Economic goals

A

Impacts positively on all economic goals eg,fe,resource allocation etc

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11
Q

Environment

A

If output can increase for less imports then living standards can rise without eroding the quality of the environment

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12
Q

International competiveness

A

Means we can sell exports and compete against imports

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13
Q

Productivity and income growth

A

In the medium to long run, the growth of real income depends largely on productivity growth

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14
Q

eg of effect on income growth

A

pg had a period of strong growth in 1990’s thus high income growth

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15
Q

Why did incomes still grow when PG fell stagnant in 2000s

A

The effect of a decline in PG was offest by the boost in incomes from the rise in Terms of trade over the past decade

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16
Q

Single factor productivity

A

Is a ratio of output to inputs of labour when there is only one input in the denominator

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17
Q

2 ways to calculate sfp

A

GDP/Labour Hours and by capital deepening + MFP

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18
Q

Capital productivity

A

is the ratio of output to capital input

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19
Q

measuring Capital productivity

A

Output/ how long capital is used for

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20
Q

Multifactor productivity

A

measures the efficiency of which capital and labour are combined to create output

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21
Q

Calculating MFP

A

GDP/ labour hours + capital inputs

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22
Q

What does MFP represent

A

The part of growth in output that cant be explained by growth in labour or capital inputs

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23
Q

What changes does MFP reflect

A

Technological change and management ability

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24
Q

management ability

A

Their ability to

Combine labour and capital

Innovate

Introduce trainig

Motivate workers

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25
Q

Capital deepening

A

Is defined as growth in the ratio of quantities capital to labor

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26
Q

Capital deepening formula

A

Capital Deepining= Labour productivity- multifactor productivity

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27
Q

2 Parts of productivity determinants

A

Productivity improvements and underlying factors in an economy

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28
Q

3 parts of Productivity improvements

A

Productivity of labour, capital and multifactor productivity

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29
Q

Productivity of labour

A

Refers to human capital i.e the health, education and skills of the workforce

30
Q

3 things under productivity of capital

A

Tech advances

Accumulation of Knowledge

Specialization in production

31
Q

Accumulation of knowledge

A

Are seen as central in the development and application of new technologies (i.e innovation)

32
Q

4 things under multifactor

A

Firm improvements

Production techniques

Managing organisational change

Adapting to change

33
Q

Firm improvements

A

Improvements in firm organisation, management practices and work arrangements can be a major source of productivity

34
Q

Production techniques

A

Bringing into operation better production techniques and the accumulation of physical capital

35
Q

4 things under governments role

A

Promoting competition

Openness of the economy to trade and investment

Access to overseas

Regulations

36
Q

Access

A

To overseas tech and management expertise may not be possible without openness to foreign trade and investment

37
Q

Regulations

A

Can inhibit the adoption of different production methods and new technologies

38
Q

Productivity and economic growth

A

Surrounds the law of diminishing marginal returns as its difficult to maintain sustained EG simply by adding more resources, thus an increase in productivity is needed to maintain a sustained growth rate

39
Q

3 changes in productivity over last 10 years

A

Improvments following the mining boom due to increased capital investment

Mining boom dip due to decreased incentive to work

changes in debt policy make Durable goods more affordable thus improving performance

40
Q

Productivity and inflation

A

By shifting supply it can be seen that inflation decreases- becuase productivity decreases cost push inflation

41
Q

Productivity and employment and redistribution

A

By achieving growth it means higher level of employment which also improves the redistribution of income

42
Q

Allocation of Resources and productivity

A

Obviously assists in improving the efficient allocation by improving allocative efficiency

43
Q

7 supply side policies

A

Tax reform

Deregulation

Labour market reform

Trade liberalization

research and innovation

Education and training

Investment in infrastructure

44
Q

3 ways for labour market reform

A

Fairk Work act 09, work choices, national employment standards

45
Q

What is labour market reform

A

Involves changes or modifications to the laws relating to the setting of wages and the negotiation of working conditions

46
Q

Fair work act

A

Created enterprised based bargaining, good faith bargainign and ammendements for family friendly nature and assistance with unfair dismissal

47
Q

What is good faith bargaining

A

Requires each party to make a sincere effort in negotiations

48
Q

What is deregulation

A

Removal of unnecessary restrictions that impede the free market from operating effectively

49
Q

1 ways for deregulation

A

Removal of monopilies

50
Q

Removal of monoploies

A

progressive Privitisation of Telstra in the 90’s dismantlted monopoly control over telecomms allowing for optus and vodofone etc to enter the market

51
Q

effect of removal of monopolies

A

Intensifies competition because privatised companies are more driven to increase efficiency as they are forced to keep their profit margin

52
Q

Tax reforms what is

A

Changes to tax rates and the removal of inefficient taxes

53
Q

Tax reform affect on productivity

A

Lowering production costs of firms as well as using tax savings to improve quality of labour and capital

54
Q

3 tax reform policies

A

Company tax rate cuts

Asset write off

Small Corporations

55
Q

Company Tax

A

Company tax rate cut to 25% for small and medium soized companies with an annual turnover less tha 50 million

56
Q

Asset write off

A

Instant asset write off thresholf to 30,000 heping to reinvest in business, employ more workers and grow.

57
Q

Small corportations Tax

A

Jobs and small businesses package in the 105 budget saw a 1.5% cut in tax for small corporations

58
Q

3 p’s for Real Gdp Growth

A

Popultation Growth Participation rates growth Productivity growth

59
Q

Trade liberalization what is it

A

Refers to trade agreements, tariff reductions and subsidy re movement

60
Q

How does trade liberalization refer to productivity

A
  • Removing subsidies forces domestic firms to improve productivity.
  • Cheaper intermediate/capital goods -

Reducing COP

61
Q

Effect of labour market reform

A

Greater incentive to work harder increasing productivity as employees know they will be able to achieve pay rises that they can negotaite with their employer not the government

62
Q

What is competition policy

A

Is not just examining the laws that encourage competitive behaviour but also removing restrictions that may impede competition

63
Q

What was the NCP

A

Aimed at increasing competition, lower prices and greater efficiency in the use of resources by firms

64
Q

2 NCP measures

A

Strucutral reform of public sector monopolies to faciliatate competition

A review of all legislation across AUS that restricted competition

65
Q

Example of trade liberalization

A

The general tarrif rates on most goods and services were progressively reduced from around 36% to 5% by 1996

66
Q

What is research and innovation

A

Implementation of a new/improved product process and marketing methods in business practices or external relations

67
Q

Effect of innovation of productivity

A

Involves access to new products/industries and markets helping to drive productivity

68
Q

Eg of innovation

A

National Innovation and Science Agenda will drive smart ideas for business growth and local jobs through 1.1 billion for 24 iniatives

69
Q

What is infrastructure policy

A

Refers to policy around economic infrastructure like rail,road,ports and sewerage

70
Q

2 benefits of infrastructure to productivity

A

Less travel time for goods and people

Connectivity between regions

71
Q

Eg of infrastructure policy

A

2007 Rudd gov committed 22 billion to AUS link to beat capacity constraints and bottlenecks in transport infrastructure

Ligma (19 decks)

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