Question

The population of Enchancia is much reduced from its pre-war levels. Princess Sofia’s decision to execute all those peasants who supported James and Amber has greatly diminished the number of workers. Sofia knows that the population will take some time to recover. Without more workers, economic growth can only come if those workers become more productive. Sofia would like you (on pain of death) to provide her with some policy suggestions as to how to achieve this.

Answer 1

Labor productivity :

Labor being one of the eminent factor of production as in the absence of it production will be at halt ,even one has capital stock but to operate it labor is required,more productivity more output will have more demand leading to more sales,then more income and is helpful to achieve more growth

Policies to enhance labor productivity :

1. WORK INCENTIVE - One of the most common and direct way to improve labor productivity is by giving work incentives so that they have a desire to work more it can be Monetory benefits or welfare re forms
2. EDUCATION AND TRAINING - In order to make there working better they should be given with education and training so that they can have better productivity by learning other skills and methods
3. INWARD MIGRATION IF WORKERS - Skilled workers if taken in the place then they can also improve the productivity
4. DEREGULATE MARKET - If market is deregulated then there will be more Competition , as a result workers have to show there best level to be a part of productive cycle.
5. INVESTMENT IN CAPITAL STOCK - Another way could be ,if labor is lacking than adding more of machinery in the work place can also help to uplift the productivity.

Conclusion :

Measures mentioned above if adopted to form policies will help to improve the productivity