Productivity. Output = goods and services = products What a business produces.

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Presentation transcript:

Productivity

Output = goods and services = products What a business produces

Inputs = labor + capital goods What is put together to make outputs

Capital goods Goods produced and used to make other goods and services

Labor productivity – – the amount of output (goods and services) produced per unit of input (labor) – or in other words – Output divided by input

Human capital The quality of the labor resources that can be improved through investments in the health, education and training of workers

Technological change Bringing into production new knowledge and processes Results in: Improvement of or change in existing goods

Technological change Bringing into production new knowledge and processes Results in: The introduction of new goods or services

Technological change Bringing into production new knowledge and processes Results in: – A different organization of the process

Increase in productivity means producing more goods and services with the same amount of resources OR Producing the same amount of outputs with fewer inputs

Bookmarks Inputs: Construction paper, pictures, 18 inches of yarn, 1 ruler, 1 pencil, 1 pair scissors, 1 glue stick, 1 marker, hole punch (community), your labor Outputs: 6x2 two color bookmark with picture and inspirational saying and a string with tassel attached through a hole at one end

Bookmark, cont. Working alone construct a bookmark. Record your time and calculate your productivity (Hint: it will be 1) Record it on your chart.

Bookmarks, cont. The time it took to construct one bookmark is your base time. Use this time as a constant (the amount of time you will use each time.) Now with 3 or 4 people, can you maximize your productivity? Make a plan. Predict what will happen. Record your results. Were you right? Why or why not?

Bookmarks, cont. Do it again with 7 or 8 or 9 people. Make a plan. Predict what will happen. Record your results. Were you right? Why or why not?

What factors influenced productivity? How did the process change it? Explain why your results were what they were.