Productivity

HideShow resource information
  • Created by: apple87
  • Created on: 02-02-15 17:30
What is productivity?
The process of combining inputs in order to produce goods and services. It describes how efficiently a resource is being used.
1 of 13
What is productivity measured as?
Output per unit of input or output over time.
2 of 13
How does physical capital increase productivity?
It enables labour to be more efficient and productive, like technology.
3 of 13
What is human capital?
When workers are educated which improves their ability and individually contribute to production.
4 of 13
How does organising resources more efficiently increase production?
If delays cause employees time to be wasted, improving the way they are organised can increase productivity.
5 of 13
What is the formula for labour productivity?
Output(per period) / No. of employees (for the same period)
6 of 13
What is the formula for capital productivity?
Output(per period) / Capital employed (per period)
7 of 13
What is capital intensity?
The amount of capital equipment used in production.
8 of 13
What is labour intensity?
The amount of labour used in the production process.
9 of 13
Which type of production is more common in developed countries and why?
Capital intensive because capital becomes cheaper as wealth increases.
10 of 13
Why is a Dentist a labour intensive occupation?
Because it relies on the skill of an individual.
11 of 13
What are the problems with capital intensive businesses?
Tools and machinery may become obsolete, failure to upgrade may cause loss of competitive market, new investment is needed.
12 of 13
What are the problems with labour intensive businesses?
Skills may no longer be needed, retrainning is needs, in general new investment in human capital is needed/
13 of 13

Other cards in this set

Card 2

Front

What is productivity measured as?

Back

Output per unit of input or output over time.

Card 3

Front

How does physical capital increase productivity?

Back

Preview of the front of card 3

Card 4

Front

What is human capital?

Back

Preview of the front of card 4

Card 5

Front

How does organising resources more efficiently increase production?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies & Economics resources:

See all Business Studies & Economics resources »See all Productivity resources »