T12 - 8

Question 1

Define:

Efficiency

Answer 1

Efficiency is the speed with which a task is done.

Question 2

Define:

Effectiveness

Answer 2

Effectiveness is how well the task is done.

Question 3

Discuss the effect that technology has on productivity and economic growth.

Answer 3

• When productivity of workers are low and resources are wasted there is a decrease in the level of output.
• Improvements in productivity lead to economic growth.
• This leads to an improvement in the standard of living.
• Technology has an impact on economic growth when it leads to a greater number and range of goods and services being produced.
• Economic growth usually leads to a decrease in unemployment, a reduction in poverty and an increase in the standard of living.
• Sometimes when new technologies are introduced, it replaces labour in the production process and people lose their jobs.
• This can lead to an increase in unemployment and poverty.