Productivity Growth

Productive is a measure of the efficiency of factors of production in the production process
It measures the output we get from a given amount of factor inputs
Higher productivity means that we can
Produce more goods and services at a lower cost per unit.This will help to reduce prices and increase consumer welfare.
Increase total output from our scare factor resources(causing an outward shift of the PPF)
Achieve a faster rate of economic growth because of a rise in LRAS
Measuring Productive
It is not possible to measure productive accurately and objectively in every industry-for example in services such as leisure and catering or eduction or social care services.
Labour productivity can be measured by calculating output per worker or output per hour worked
Output per hour worker takes into account the average number of hours worker over a given time period
Output per worker can vary for a number of reasons