Question

A) What is productivity and how is it measured? Explain the factors necessary to raising productivity.

B) What is economic growth? Research and state the rates of economic growth for the U.S. economy in the years 2014, 2015, and 2016.

C) Say the Trump administration hires you to outline how the rate of economic growth could be increased by 1-2% a year. Provide a minimum of four recommendations.

Answer 1

A) Productivity is the measure of efficiency of the input in producing the output. It is the rate at which inputs are converted into output.

It is measured by the ratio of output and input.

Productivity= total output / units of input

Factors affecting productivity are the following-

Training- workers can be trained for carrying production activity which will make them more efficient.

Human capital- investment in human capital that is education also increases people's productivity.

Technological improvement- technology improvement also increases output produced per unit of input.