What is meant by the term productivity? - Edexcel - GCSE Business - Question 7 - 2017 - Paper 1
Question 7
What is meant by the term productivity?
Worked Solution & Example Answer:What is meant by the term productivity? - Edexcel - GCSE Business - Question 7 - 2017 - Paper 1
Step 1
Definition of Productivity
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Answer
Productivity refers to the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input. In simpler terms, it indicates how efficiently resources are utilized to produce goods and services.
Step 2
Importance of Productivity
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High productivity levels can lead to increased economic growth, as more goods are produced at a lower cost. It can improve a company's competitiveness in the market and ultimately contribute to higher wages for workers due to the efficiency gains.
Step 3
Factors Affecting Productivity
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Several factors influence productivity, including technology, workforce skills, organizational practices, and the quality of inputs. Improvements in any of these areas can lead to greater productivity.
