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Define the term - Productivity
Productivity is the concept which measures how outputs can be maximised from given inputs. In factories labour productivity is normally calculated by dividing total output by the number of workers.
Productivity has generally increased faster in manufacturing due to the invention of superior capital equipment and innovation of working practices which have made firms more efficient and less wasteful.
New technology in manufacturing industries has usually led to the introduction of automated machines that can perform complex tasks without getting tired or making mistakes. While a car production plant in the 1950s would have employed workers to perform manual tasks on the production line, modern car makers use robots that are monitored by a technician. Car companies like BMW and Toyota have also invented more efficient management techniques based on the idea of last-minute delivery. These working practices have considerably cut down on waste and allowed managers to quickly identify problems in the production process.
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mundell-Fleming Model
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