Question

(b) (i) Describe standard of living and one dimension of standard of living.

(ii) Describe productivity.

(iii) Explain how productivity related to the country’s standard of living.

(iv) Identify the factors that determine labour productivity.

Answer 1

b)i)standard of living is the quality and quantity of peoples consumption or income.and is a compromise between the human likes and expectation of society.it deponds on national level income,population size,productivity and many other material and non material factors.

Standard of living usually calculated by the measure of GDP is just an indicator of standard of living and doesnt account to measure safety,inequality in income,health,technology changes.GDP is the total output of goods and services of production of people within the country in one year.

2)productivity ia a measure of economic growth and is the measure of efficiency in production .a ratio of output volume per unit and input volume over specified period of time .increasing income and profit would results in increase in productivity.

3)increase in faster productivity helps to increase the standard of living of a country.standard of living of country is the ability to produce goods and service also the amount of goods and service produced with each hour of a worker time is also a measure of productivity which leads to a link between them.

Productivity hels to increase the real wages and decrease the prices of goods which further helps to decrease the level of poverty.countries like ireland,korea,US have positive growth in living standard because of increase in productivity of labor.if employees tends to increase the working hourse,the gdp can increase its level even without an increase in productivity,which means that productivity is not only a way to lead a standard of living,high level of participation of employement and labor force is also an important factor to consider.

4)factors that effect labour productivity is

Security: workers must be provided with high security against injury,unemployment which further helps to increase the efficinecy of workers

Mistakes: increase in mistakes and ommision causes negative impact on labour productivity

Blockage: blocking of roads and congested work sites and hazardous area of work could effect labour productivity.

Skill and devolpement

high skilled and experianced employees increase the efficiency of labour.

Working hours

Decreasing the working hours with small breakes increase efficiency of labour.

Seasonal and climate change

Changes of season,temparature,rain will imapact the workers causing tiredness both physicaly and mentally

Inadequate equipment

Employees would be very frustrated to work with limited equipments