Photo AI
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
Answer
Productivity refers to the efficiency with which goods and services are produced. It is typically measured as the ratio of outputs to inputs in a production process. A common way to express productivity is as:
ext{Productivity} = rac{ ext{Output}}{ ext{Input}}
In simpler terms, it assesses how effectively resources, such as labor and capital, are utilized to generate economic value.
Step 2
Factors Affecting Productivity
Answer
Various factors can influence productivity, including:
- Technology improvements: Enhanced tools and machinery can significantly increase output.
- Employee skills: A well-trained workforce tends to produce more efficiently.
- Management practices: Effective organizational strategies can lead to better resource allocation.
Improved productivity often results in higher profitability and economic growth.