Understanding Productivity and Efficiency

Christina and Cameron are working in a factory. What is the definition of productivity in their business context?

• Output per unit of input per time period

• Input per unit of output per time period

• Total output produced in a year

• Number of employees in a business

In a school project, Angus and Cameron are tasked with improving the productivity of a small factory. Which of the following is a factor that can influence productivity?

• Quality of machinery

• Colour of uniforms

• Size of the car park

• Number of windows in the office

How does increased productivity generally affect a business's competitiveness?

• It decreases competitiveness

• It has no effect on competitiveness

• It increases competitiveness

• It makes the business less efficient

Daisy and Louis are running a bakery. Which of the following best describes efficiency in their production process?

• Producing the maximum possible output

• Production at minimum average cost

• Using the most expensive resources

• Having the largest workforce

Harriet and Anya are working on a project to improve their company's productivity. Which of the following is NOT a factor influencing productivity?

• Employee training

• Outdated technology

• Poor management

• The colour of the office walls

In a school project, Louis and Isla are comparing two types of production methods. What is the main distinction between labour intensive and capital intensive production?

• Labour intensive uses more machines, capital intensive uses more people

• Labour intensive uses more people, capital intensive uses more machines

• Both use only manual labour

• Both use only automated systems

In a factory where Cameron and Louis work, which of the following actions would most likely increase efficiency?

• Reducing waste in the production process

• Increasing the number of breaks

• Painting the walls a new colour

• Hiring more managers

Louis runs a small bakery and produces 500 loaves of bread using 100 hours of labour. What is the productivity per hour?

• 2 loaves per hour

• 5 loaves per hour

• 50 loaves per hour

• 0.2 loaves per hour

Harriet and Louis are discussing different industries. Which of the following industries would they identify as capital intensive?

• Car manufacturing

• Fruit picking

• Hairdressing

• Teaching

Anya and Zoe run a small bakery. Why is high productivity important for their business?

• It increases costs

• It reduces competitiveness

• It can lead to higher profits

• It makes products less attractive