Firms and production
| English | Chinese | Pinyin |
|---|---|---|
| productivity | 生产率 | shēng chǎn lǜ |
| production | 生产 | shēng chǎn |
| capital-intensive | 资本密集型 | zī běn mì jí xíng |
| labour-intensive | 劳动密集型 | láo dòng mì jí xíng |
| training | 培训 | péi xùn |
| technology | 技术 | jì shù |
| average cost | 平均成本 | píng jūn chéng běn |
| competitiveness | 竞争力 | jìng zhēng lì |
Making more from the same
- Two factories with identical machines can turn out very different amounts. The difference is productivity 生产率.
- Raising it is how firms — and whole economies — get richer.
Factors of production lab
Sort real resources by the factor of production they represent.
Productivity is best defined as:
Productivity measures efficiency — output per worker (or per machine).
8 workers produce 240 units a day. What is productivity (units per worker)?
240 / 8 = 30 units per worker.
Total output produced is called ______.
Production is the total; productivity is per worker.
Production 生产 vs productivity
- Production = the total amount produced.
- Productivity = output per worker (or per machine) — efficiency, not just quantity.
Worked example. A team of 5 makes 100 units a day → productivity is 20 units per worker. Add a machine so they make 150 → productivity rises to 30, with the same 5 workers.
The division of labour raises productivity — each worker specialises in one task
An oil refinery that runs mainly on machinery is:
It relies mainly on capital (machines), not labour.
Labour- vs capital-intensive 资本密集型
- Labour-intensive 劳动密集型: production relies mainly on workers (a hand car-wash, a restaurant).
- Capital-intensive: production relies mainly on machines (an oil refinery, car assembly).
Wages depend on skills, the difficulty of the job, and demand
Which raise productivity? (Select all that apply.)
More workers raise production, not necessarily output per worker.
Raising productivity
- Better training 培训, newer technology 技术, and improved organisation all raise output per worker.
- Higher productivity lowers average cost 平均成本 and boosts competitiveness 竞争力.
Production rising ≠ productivity rising. Hiring more workers raises production but may leave output-per-worker unchanged. Productivity is about doing more with the same.
You've got it
- production = total output; productivity = output per worker
- labour-intensive uses mostly workers; capital-intensive uses mostly machines
- training, technology and organisation raise productivity → lower cost