Theme 1.1 - Labour Productivity Flashcards

1
Q

What does production involve?

A

Converting inputs into outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is productivity?

A

A way of measuring how efficiently a company converts inputs into outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How is productivity measured?

A

Output per unit of input employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the overall productivity ratio?

A

Output/Input

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How can productivity per worker be calculated?

A

Output/No. of workers

Worker A output/30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Why is labour productivity important? (5 Factors)

A

Economic Growth
Inflation
Rising real Wages
Competition
Benefits to firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why is labour productivity important for economic growth?

A

Improvements enable firms to produce more for lower costs
Profits increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why is labour productivity important for inflation?

A

Improvements help to keep costs + inflation low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Why is labour productivity important for rising real wages?

A

Workers produce more output for lower cost
Firm profit rises
Firm can afford to sustain higher wage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Why is labour productivity important for international competition?

A

A nation can export goods for cheaper prices than their competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why is labour productivity important for firms?

A

Firms may be preferable as they can afford to sell their product cheaper than their competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How can you increase labour productivity?

A

Specialisation
Morale + skills of workforce
Technology
Improving worker conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly