1. 3.2 Productivity Understand what is meant by productivity.
Explain difference between production and productivity.
3. Explain how productivity can be increased.

2. Key Terms down p. 35
Look at the example p.34 to show how productivity can be demonstrated.

3. Specialisation
Involves individuals, firms or countries producing only a limited range of goods or services. .
Become better at making product and therefore more productive.
But Advantages and Disadvantages.

4. How firms can become more productive.
3 ways:
Capital
Specialisation
Training

5. The impact of competition
Lower average costs
Lower, more competitive price
Higher profits.