The total output of goods and services produced by an individual, firm or country.
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How is production a process?
It's the process of converting inputs of raw materials and the services of the various factors of production into outputs.
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What is productivity?
It is a measurement of the rate of production by one, or all, of the various factors of production. It is a measure of how efficient an individual worker, firm or country is at generating output.
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How is productivity calculated?
Total output per period of time / number of units of factor of production.
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How is labour productivity calculated?
Total output per period of time / number of units of labour.
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What is labour productivity an important determinant of?
How competitive firms and individual countries are.
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What can improvements in labour productivity arise from?
More and better education and training, advances in technology, and specialisation and division of labour.
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Card 2
Front
How is production a process?
Back
It's the process of converting inputs of raw materials and the services of the various factors of production into outputs.
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