Productivity Policies

• What is the impact of improved skills on labor productivity?

  Improved skills can increase labor productivity.
• How can investing in vocational training benefit workers?

  It can equip workers with the expertise required in advanced industries.
• What is one way to promote innovation in businesses?

  Providing tax credits for research and development.
• What is the result of improved process efficiency due to innovation?

  It results in higher output per worker.
• What type of infrastructure can enhance business efficiency?

  High-speed broadband.
• How does enhancing infrastructure raise productivity?

  It aids businesses in operating more efficiently.
• What is the effect of fostering competition among firms?

  It drives firms to operate more efficiently to maintain their market position.
• How can flexible labor markets contribute to productivity?

  They can match skills better with job requirements.
• What are the five microeconomic policies to improve productivity?

  1. Skills Training and Education
  2. Promoting Innovation
  3. Investment in Infrastructure
  4. Fostering Competition
  5. Flexible Labour Markets
• What is one macroeconomic policy that can improve productivity?

  Monetary Policy.
• How can lower interest rates affect productivity?


  They can encourage investment in capital, leading to increased capital per worker.
• What is the role of fiscal policy in enhancing productivity?

  Government spending on infrastructure can enhance the productive capacity of the economy.
• What are supply-side policies aimed at improving productivity?

  Measures such as tax cuts that encourage investment.
• How does deregulation promote productivity?

  It can promote competition and efficiency.
• What is the effect of trade policies on productivity?

  Opening up trade can expose firms to international competition, driving productivity improvements.
• What are the five macroeconomic policies to improve productivity?

  1. Monetary Policy
  2. Fiscal Policy
  3. Supply-Side Policies
  4. Regulation/Deregulation
  5. Trade Policies