Feel free to mention any other economical problems which have or are occuring to current date.
2006-11-01 09:23:38 · 3 answers · asked by Anonymous in Social Science ➔ Economics
Productivity means producing more with the same amount of input and thus is measured as output divided by inputs. Thus,
labour productivity = GDP/no. of employed people
If an economy can increase its output, then everyone in that economy can enjoy a higher standard of living. Therefore, productivity is usually a good thing and therefore not a problem.
For example, when you replace a heap of unskilled jobs with computers or robots because it is more efficient, productivity improves. However, this does also mean that the people who have been replaced lose their jobs. Unless unions are excessively powerful or minimum wage laws are set too high, these people will, over time, find other jobs and total output will increase. That said, unless teh economy is growing quickly so that those people who lose their jobs can find new ones quickly, then unemployment could, at least temporarily go up. This is the main situation where productivity can be a problem.
2006-11-01 09:33:40 · answer #1 · answered by eco101 3 · 0⤊ 0⤋
There are none. Problems arise when productivity stagnates or declines...
2006-11-01 09:43:45 · answer #2 · answered by NC 7 · 0⤊ 0⤋
There aren't any. Quite simply, why do something that would take more effort?
2006-11-02 00:53:49 · answer #3 · answered by Mardy 4 · 0⤊ 0⤋