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Questions and Answers
What is production primarily concerned with?
What is production primarily concerned with?
- Reducing employee costs
- Converting raw materials into finished products (correct)
- Maximizing profit
- Increasing market share
Productivity is a measure of how well a firm can convert inputs into outputs.
Productivity is a measure of how well a firm can convert inputs into outputs.
True (A)
What elements are combined in the production process?
What elements are combined in the production process?
Tangible inputs and intangible inputs
Productivity can be expressed as the ratio of outputs produced to __________ consumed.
Productivity can be expressed as the ratio of outputs produced to __________ consumed.
Match the following terms with their descriptions:
Match the following terms with their descriptions:
Which of the following best describes productivity?
Which of the following best describes productivity?
Higher productivity can lead to better market value for customers.
Higher productivity can lead to better market value for customers.
List one way to enhance productivity.
List one way to enhance productivity.
What is the main difference between production and productivity?
What is the main difference between production and productivity?
Production and productivity are contradictory terms.
Production and productivity are contradictory terms.
How is land productivity calculated?
How is land productivity calculated?
Labour productivity is calculated by dividing total output by ____________.
Labour productivity is calculated by dividing total output by ____________.
Match the following types of productivity with their definitions:
Match the following types of productivity with their definitions:
What would be the land productivity if a farmer produces 750 kg of sweet potatoes using 2 acres of land?
What would be the land productivity if a farmer produces 750 kg of sweet potatoes using 2 acres of land?
What is one of the key purposes of measuring productivity?
What is one of the key purposes of measuring productivity?
Flashcards
Production
Production
The process of creating goods or services using a company's resources.
Productivity
Productivity
A measure of how efficiently a company uses its resources to produce goods or services.
Land Productivity
Land Productivity
The amount of output produced per unit of land.
Labour Productivity
Labour Productivity
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Capital Productivity
Capital Productivity
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How is productivity calculated?
How is productivity calculated?
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What is the difference between production and productivity?
What is the difference between production and productivity?
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Tangible Inputs
Tangible Inputs
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Intangible Inputs
Intangible Inputs
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What does 'productivity' measure?
What does 'productivity' measure?
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How does 'competition' impact 'productivity'?
How does 'competition' impact 'productivity'?
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What is the relationship between 'production' and 'productivity'?
What is the relationship between 'production' and 'productivity'?
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How can 'productivity' be improved?
How can 'productivity' be improved?
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Study Notes
Production
- Production is the process of transforming raw materials into finished, usable products.
- It involves both tangible inputs (raw materials) and intangible inputs (ideas/information).
- Production is a gradual transformation process ensuring products meet quality standards and human needs.
- Production uses mechanical or chemical processes.
Productivity
- Productivity measures the efficiency of converting inputs (raw materials, labor, capital) into outputs (finished goods).
- It's calculated as the ratio of outputs produced to inputs consumed during a specific period.
- Productivity is a key indicator of firm performance, showing how efficiently resources are being used.
- Higher productivity leads to better customer value and larger market shares.
Dynamic Concept of Productivity
- Competition drives higher productivity.
- Increased competition leads to improved productivity for firms.
- Enhanced productivity leads to better value for customers and higher market shares.
Comparison Chart: Production vs. Productivity
FeatureProductionProductivityMeaningFunction focused on transforming inputs into desired outputsEfficiency in resource utilization for desired outputWhat is it?Conversion process of inputs to outputMeasure of resource efficiencyRepresentsQuantities of units producedRatio of output to inputExpressionAbsolute numbersRelative ratios
Key Differences between Production and Productivity
- Production is the process of creating output, while Productivity is its efficiency.
- Production focuses on the quantity of output, whereas Productivity focuses on the efficiency of resource utilization.
- Production involves value adding at each stage. Productivity measures how well resources are utilized to add value.
Types of Factor Productivity
- Land Productivity: Output of goods divided by land area (e.g., kg of potatoes per acre).
- Labor Productivity: Output of goods/services per labor hour (e.g., computers per labor hour).
- Capital Productivity: Output of goods/services per unit of capital employed (e.g., tons of cargo per forklift).
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