What Can Lead to Increases in Productivity

question 73

Short Answer

What can lead to increases in productivity?
Productivity increases when firms become more efficient, expand, achieve breakthroughs that enable output increases to occur with reduced inputs, downsize while maintaining output with fewer inputs, and retrench with output and inputs decreasing, but inputs decreasing at a faster rate than output.

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Definitions:

Cash Transfers

Direct payments given to individuals or households, typically by the government, to reduce poverty or provide social assistance.

Direct Aid

Financial or material support provided directly to individuals, organizations, or countries in need, often aimed at alleviating poverty or addressing emergencies.

World Bank

An international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.