A textile cooperative buys a new cutting machine that allows the same number of workers to cut more fabric each hour. What has happened to labour productivi...

Assessment: Economics 9214 | Paper 2 Mock 01 | Written Paper 2 Subject: Economics - 9214

Question 1 Report

A textile cooperative buys a new cutting machine that allows the same number of workers to cut more fabric each hour. What has happened to labour productivity? [1]

Answer Details

(a) Labour productivity has increased. [1]

Labour productivity is output per worker, or output per hour worked. The same number of workers can now cut more fabric each hour, so output per worker per hour has risen.

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