Year 10 Capital Productivity

What does capital productivity measure?

• The total amount of capital a business has

• The amount of goods and services produced using a fixed amount of capital in a given time

• The number of goods produced regardless of capital used

• The cost of capital used in production

How can businesses increase their productivity?

• By increasing the price of their products

• By using equipment with the most advanced technology

• By limiting the range of products they offer

• By reducing the number of employees

What is an example of improving processes in a business?

• Increasing the size of the office

• Taking longer breaks

• Using just-in-time inventory systems

• Reducing the number of customers

When did the Margaret River Chocolate Company first open?

• 1998

• 1999

• 2001

• 2000

What surprised the owners of the Margaret River Chocolate Company on their first day of business?

• They ran out of chocolate

• They had 2000 customers instead of the estimated 200

• They received a large investment

• The machinery broke down

How has the Margaret River Chocolate Company improved productivity?

• By decreasing the number of outlets

• By reducing the quality of the chocolate

• By increasing productivity through mechanisation

• By limiting customer feedback

What strategy does the Margaret River Chocolate Company use to improve labour productivity?

• Hiring untrained staff

• Reducing the number of products

• Providing incentives and remuneration to senior managers

• Decreasing wages