| When you are producing something, what are you Converting to make? | -Production is when Inputs are Converted into Output - Stuff that can be sold - an Exchangeable Value.
-The Inputs are any of the 4 Factors of Production, so Land Labour, Enterprise and Capital |
| What are:
1. Tangible Inputs
2. Intangible Inputs | 1. Things that can be physically Touched - Raw Materials or Robots
2. Things that aren't Physically real - Abstract. Knowledge, Talent or Ideas falls under this Category |
| What is Productivity? | -This is a measurement on how Efficient a Firm / Economy is producing Output of good/s
-It is called 'Output per unit of Input Employed.' So if 2 Firms had different levels of Outputs with the same Inputs, then one is more Productive.
-Productivity can be on all 4 Inputs, or on individual Factors like Labour. |
| What is Labour Productivity?
-How can it be Improved? | -This is when Productivity measurement delves into one Factor
-This is the amount of Output produced per Worker. To calculate, get the Output produced in x Time, and Divide by Total Number of Workers / Hours worked
-Better Training, More Experience, Better Technology and Specialisation improves Labour Productivity. |
