1.4.1 Production & Productivity
Production
Production: The process of combining various resources (inputs) and the factors of production to create goods and services (outputs).
Through production, businesses add value which enables them to sell goods and services at a higher price than the cost of the inputs used.
Production measures the total output of goods and services produced by a firm, industry, or economy over a specific period of time.
Productivity
Productivity: A measure of the efficiency of production, typically measuring the output produced per unit of input used.
Labour productivity: A measure of the output produced per unit of labour input, often expressed as output per worker or output per worker per hour.
Higher productivity is important for a business as it can lead to lower costs per unit, higher profits, and a competitive advantage.
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Seven original multiple-choice questions on production, labour productivity and added value, written to AQA Paper 3 Section A style, with full worked answers.
Practice Questions: 1.4.1 Production and ProductivityPast paper questions on this topic
Two questions on Production and Productivity from the AQA A-Level papers, 2017–2018, 9 marks each. Each one links straight to the page of the official mark scheme where its answer begins.
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