The following table shows output from a company producing reusable water bottles. The production manager is comparing labour productivity before deciding wh...
Question 1 Report
The following table shows output from a company producing reusable water bottles. The production manager is comparing labour productivity before deciding whether to advertise to more customers.
| Day | Production workers | Bottles completed |
|---|---|---|
| Monday | 20 | 4,800 |
| Tuesday | 24 | 6,480 |
(a) Calculate labour productivity on Tuesday. Show your working. [2]
(b) Calculate the increase in labour productivity from Monday to Tuesday. Show your working. [2]
(c) Identify one factor of production used by the 24 workers. [1]
(d) Give three ways the company could increase labour productivity. [3]
Answer Details
(a) Labour productivity means output per worker. On Tuesday:
\[\frac{6\,480\text{ bottles}}{24\text{ workers}}=270\text{ bottles per worker}\]
Tuesday productivity is 270 bottles per worker [2].
(b) First calculate Monday's productivity:
\[\frac{4\,800}{20}=240\text{ bottles per worker}\]
\[270-240=30\text{ bottles per worker}\]
The increase is 30 bottles per worker [2].
(c) The 24 workers are the factor of production called labour [1].
(d) The company could provide training [1], introduce more efficient machinery [1], and improve worker motivation, for example through bonuses [1]. Better layout, maintenance and better-quality materials are also valid.
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