MGTA02H3 Chapter 2: Chapter 2 - Study Guide

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MGTA02H3 Full Course Notes
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Productivity : a measure of efficiency that compares how much is produced with the resources used to produce it. Productivity considers both the amounts and the quality of what is produced. Quality: a product"s fitness for use in terms of offering that consumers want. Labour productivity of a country = gross domestic product (gdp) Partial productivity ratio calculated by dividing gdp by total number of workers. Productivity in among global competitors differs due to the various factors: technologies, human skills, economic policies, natural resources and even traditions. Canada"s competitiveness is a concern because we have been living off our rich diet of natural resources. A country that improves its productivity increases its nation"s total wealth. Whereas, if productivity goes down an increase in individual incomes comes at a cost to other individuals. Higher productivity = lower costs (expenses) = lower product prices or greater profit margins.