1.2.2 Productivity and the Division of Labour

read Pages 109-112 in the testbook and make summary notes. Be clear about the difference between production and productivity. 

This is very important and often confused by students. Production is the total output of goods and services and productivity is the output per unit of FOP. 

So we measure Labour productivity by dividing the total output produced by the number of workers.

What is happening to production and productivity in the following example?

in 2007 company X is producing 200 units with 10 workers. However due to the economic crisis by 2009 output has fallen to 150 units and they only have 5 workers left.

Finally make a copy of the presentation below. Do you understand everything. If not ask questions!

The Division of Labour:

• Make your own copy of the presentation below. Watch the examples of Division of Labour.

But then again do we actually need labour? (watch the video below)