13-08-2012, 04:36 PM
PRODUCTIVITY AND STANDARD OF LIVING
PRODUCTIVITY.ppt (Size: 312.5 KB / Downloads: 27)
STANDARD OF LIVING
The extent to which a peson is able spend for living a comfortable life .
Basic necessities : food , clothing , Housing , Health, Security , Education.
Greater the amount of goods and services provided the higher is the standard of living .
PRODUCTIVITY
Ratio of output and input.
Ratio of amount produced to the amount of any resources used in production.
Resourses : land, material, plant, machines, tools, labour or combination of all.
Over a period of time ,productivity has increased.
How?
Combination of improved technology, better planning, greater skills.
Increased production does not mean increased productivity.
Higher productivity means :
Increasing the output using the same input.
Reducing the input keeping the output constant.
Increasing the output to a larger extent with a
smaller increase in input.
Productivity and standard of living
Management will get more profit.
Higher earnings for workers.
Government will also get more income.
People will get more facilities.
Increased productivity will improve standard of living as a whole.