Micro 4 Flashcards
What is labour productivity ?
How efficiently workers work
What is capital productivity ?
Machinery should work more efficiently that labour
What is land productivity?
If other crops can benefit other crops with optimal benefits
What is productive efficiency?
The minimum inputs used for maxim output at lowest costs
What is allocative efficiency ?
When we are optimising the distributed of goods and services
What is Pareto efficiency ?
Occurs when no one can be made better off without someone being worse off
What is specialisation?
When a workers because the best at their specific job
What is division of labour ?
Where production is broken down into many separate tasks.
What is a short run ?
At least one factor of production is fixed
What is a long run ?
There are no fixed factors of production
What is the law of diminishing returns ?
Every time a variable factor is added or changed to ( labour) a fixed factor (capital ) a firm will take the point where it has disproportionate quantity of labour to capital ruining production
