Productivity and Unit Costs Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

PERSONALISED 1-TO-1 TUTORING

Need more help on this topic? Get 1-to-1 support

Get support with clear explanations, practice and feedback (Ages 5 to 16).

  • DBS-checked tutors
  • Flexible times
  • Parents can be updated

Want an ad-free experience? Subscribe to remove ads

What does productivity mean in economics?

It is the amount of output made per worker or per hour.

How do you calculate labour productivity?

Labour productivity = total output divided by number of workers. Example: 200 units divided by 10 workers = 20 units per worker.

What is a unit cost?

It is the cost of making one unit. Unit cost = total cost divided by number of units made.

If a factory makes 300 units at a total cost of £900, what is the unit cost?

£3 per unit.

If 5 workers make 250 units in a day, what is labour productivity per worker?

50 units per worker.

How does higher productivity affect unit costs?

It lowers unit costs because wages and other costs are spread over more units.

Name two ways a firm can raise labour productivity.

Training staff and using better technology.

What is the difference between production and productivity?

Production is total output. Productivity is output per worker or per hour.

How do you work out labour cost per unit?

Labour cost per unit = total wages divided by number of units made. Example: £1,000 divided by 500 = £2 per unit.

What happens to unit labour cost if output per worker doubles and wages stay the same?

Unit labour cost halves.