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Know more about productivity and acquire help in economics

@ at offers help with economics assignments, Know more about productivity and acquire help in economics, get tutors help in economics subjects.

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Know more about productivity and acquire help in economics

  1. 1. Know More about Productivity and Acquire help in economicsEconomics is not easy subject, study of economics need proper assistance so now it is not difficult to getassistance form online tutors and also they want assignment help to reduce task burden .ManyEconomics online experts are available online for economics assignment help in order to provide aid incompletion of your task .The advantages of higher productivity for a business and for the economyHigher productivity can provide the economy with a number of advantages over time1. Lower average costs: Improvements in labour and capital productivity allow businesses toproduce output at a lower average cost. These cost savings might be passed onto consumers in the formof lower prices, encouraging an expansion of demand, higher output and possibly an increase inemployment.2. Improved competitiveness in international markets: Productivity growth and lower unit costsare key determinants of the competitiveness of British firms in domestic and overseas markets. Fromimproved productivity, businesses can develop a competitive advantage in markets where there isintense price and non-price competition from overseas suppliers.3. Higher profits: Efficiency gains resulting in rising productivity are a source of larger profits forcompanies which might be re-invested to support the long term growth of the business4. Higher real wages: In the long run there is a positive relationship between improvements inlabour productivity and the real wages paid to labour as a factor of production. Put simply, businessesare better able to afford higher wages when their labour force is more efficient5. Economic growth: Our capacity to produce goods and services depends on the stock of factorresources available plus the productivity of those factors. If the British economy can raise the rate ofgrowth of productivity then the trend growth of national output can pick up. This has implications forliving standards, unemployment and tax revenues and government spending in future yearsFactors explaining the productivity gap: Report into low UK productivity by economists at the LondonSchool of Economics:The persistent productivity gap between the UK and the two big continental European economies canmainly be explained by the fact that they have more capital invested per worker and their workers aremore skilled. Productivity growth is highest in industries with greater product market competition -where less productive firms contract and close while new more productive ones open and grow; andwhere competitive pressures force existing firms to improve. Capital investment plays an important rolein productivity growth. But the UK has less physical capital per worker than the United States andconsiderably less than France and Germany. Many explanations have been offered for these shortfalls,including macroeconomic instability and business uncertainty.
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