Question

Describe briefly the factors of productivity, Open with ii) Using the market for loanable fund diagram, show graphically and explain how the interest rate and investment are affected in each of the following cases. (Draw a separate diagram for each.) a. A book titled "Live for Today' convinces people to spend more. b. Government sells bonds to the public, c. Tax on interest income decreases.

Answer 1

The efficiency of production averagely measured is called as productivity. It can be expressed as output to input ratio that is output per unit of input in the production process. When the productivity measure includes all the inputs and outputs then it is known as total productivity. The factors which affect productivity are stated below:
1) technical factors: productivity is widely dependent on technology.this constitutes of proper location and layout and size of the specific plant and machinery accurate design of the machines and the equipments also research and development and automation as well as computerization.the mould latest technologies used the more will be the productiveness.
2) production factors: productivity is obviously related to the factors of production.the production outcome from all the departments must be properly planned ordinated and even controlled.new simplified as well as standardized production must be used.on everything being well maintained productiveness increases.
3) organisational factors:productivity and organisational factors are directly proportional to each other. There should be proper elaboration of the authority and the responsibility of each and every employee.conflicts should be avoided in between staff and proper division as well as specialisation of labour must be maintained. These all leads to rise in productiveness.
4) personal factor:the productivity and personal factors are directly related to each other. Staff should be selected and appointed at suitable post.further proper training working conditions as well as working environment must be assured. Motivation financially as well as non financially must be provided. All these leads to increase in productivity.
5) finance factor: modern business have their lifeline via finance factor.proper control must be kept on fixed capital as well as working capital. Proper financial planning must be formulated. On managing the finance properly productivity increases.
6) management factor: productivity is dependent on the management factors. This factors must be scientific professionals also future oriented and sincere as well as competent. Efficient management significantly plays role in increase of productivity and cost reductions.
7) government factor:management Mars causes proper knowledge about the rules and regulations of the government. Organisation must maintain healthy relations with the government.
8) location factor:productivity is influenced by the location factor which includes law and order situation infrastructural market availability availability of raw materials and skilled workforce.
a) the book titled"live for today"understands and craft the consumer taste hens are able to convince people to spend more.
b) if the government sells bord to the public then money supply is decreased as cash is removed from the economy in exchange of bonds.open market operations also have an effect on the rates of interest as if government purchase is wants then try score higher and rates of interest fall whereas if government sells bonds then prices at push down and rates rise.
c)when tax rates are lowered the demand for respective assets increases along with the rise of labour supply.increased employment high investment and rapid growth of economy our economy is responses to lower interest rates of taxes.