Unit 3.6 Firm & Production

Front

Production

Back

The total output of the goods and services produced by a firm or industry in a period of time.

Front

Productivity

Back

measures the contribution to production (total output) by each factor of production employed. It is one measure of the degree of efficiency in the use of factors of production in the production process. It is measured in terms of output per unit.

Front

Labour productivity

Back

output per worker per time period

Front

Efficiency

Back

how effective the firm in using factors of production to generate its output

Front

Labour intensive production

Back

where the production of a good or service depends more heavily on labour than the other factors of production

Front

Capital intensive production

Back

where a high level of investment in capital is required, such as in machinery, equipment and vehicles compared to the other factors of production