RSM219H1 Lecture Notes - Lecture 2: Gross Domestic Product, Workforce Productivity, Canadian Business
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RSM219H1 Full Course Notes
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The productivity-quality connection: productivity: measure of efficiency that compares how much is produced with the resources used to produce it; measure of economic performance. Measures how much is produced relative to the resources used to produce it. The more we are able to produce the right things while using fewer resources, the more productivity grows: productivity considers both the amounts and the quality of what is produced. By using resources more efficiently, the quantity of output will be greater. Unless the resulting goods and services are of satisfactory quality, consumers will not want them: quality: a product"s fitness for use in terms of offering the features that consumers want. When one country is more productive than another, it will accumulate more wealth. A nation whose productivity fails to increase as rapidly as that of competitor nations will see its standard of living fall.
