Question

1. Discuss how the following factors that determine labour productivity ?

----talents, education, training, and skills of workers，and why do economists think highly of labour productivity? 150 word

Answer 1

Labour productivity refers to amount of output that a worker can produce for a given amount of resources. If Labour productivity improves then firms can produce more output for the same cost. When society becomes more productive then goods are available for everyone at a reasonable price. Labour productivity depends on many factors as discussed below -
1. Education: This is one of the most important factors of labour productivity. Education level improves the worker's productivity in more ways than anything else. For e.g. Educated workers are able to communicate effectively to the business stakeholders. They are easy to train at the workplace and hence can improve overall output.

2. Training - This is another important component of labour productivity. Relevant training at workplace can improve the overall productivity. For e.g. - Supervisors who know how to use excel efficiently are able to keep record of the workers in a factory. Thus, providing such training can boost overall productivity.

3. Talents and Skills - Talents and skills also improve worker productivity. Hiring such talented and skilled workers can certainly improve overall productivity of workers.