Question

If increasing the number of goods produced is one way to increase productivity what is the other way to increase productivity?

A. Raise the price of the goods

B. Decrease the resources invested

C. Increase market share

D. Lower the quality of the materials used

Answer 1

Another way to increase productivity, besides producing more goods, is by decreasing the resources invested, which involves using them more efficiently due to better technology or processes. This can result in a rightward (or downward) shift in the supply curve. Improving product quality or increasing need can also lead to increased consumer demand, evidenced by a rightward shift in the demand curve.

Step-by-step explanation:

If increasing the number of goods produced is one way to increase productivity, another way to achieve this is by decreasing the resources invested (Option B). This doesn't necessarily mean reducing the quality or quantity of inputs but becoming more efficient in using them. Employing better technology or improved processes can lead to a decrease in the resources (like time, labor, and materials) required for production, thereby enhancing productivity. This improvement often manifests as a shift in the supply curve to the right or downward, indicating a lower price is necessary for firms to supply any given quantity. Such enhancements to productivity can also come from a reduction in input costs, such as less expensive materials, or advancements in technology leading to increased yields or more efficient production systems.

Additionally, while an improvement in product quality doesn't directly impact productivity, it can lead to an increase in consumer demand, illustrated by a rightward shift in the demand curve. An increase in the need for a product also reflects as a rightward shift in this curve. It is vital to note that raising prices, increasing market share, or lowering material quality do not inherently increase productivity.

Answer 2

Step-by-step explanation:

Start with D. You might be able to make a cheaper product and increase your profit margin, but eventually the word would would get around and it may lower your productivity because the sales would decrease.

The market determines whether or not you would be able increase the market share. I suppose this answer is possible, but it would mean that you would need to have capital to do it. The market need not cooperate. I wouldn't pick C unless I had to.

How can you reduce the resources invested? That should decrease the number of objects originally need for manufacturing the poduct in the first place. Not B.

Raise the price of the goods? How can that help? That increases the profit margin, not the number of goods produced.

I don't know what the best answer is out of these 4. None of them seem appropriate.

If I had to choose, I guess the best one is D