Growth in the Productivity of Labor

1. Clearly, our standard of living depends on our opportunities to consume, and that depends on our ability to produce. The productivity of labor is the amount of goods and services produced per hour of labor input. Higher productivity makes possible a higher standard of living because it allows society to increase the consumption of goods and services, or leisure, or environmental quality, or all three.

2. The productivity of labor is determined by the amount of land and capital available per worker, the level of technology embodied in that capital, the skills of the workers who use it, and the creativity of its entrepreneurs. Productivity can be increased by producing more capital goods, by advancing technology through research and development, and by improving skills through education and training. Affluent societies are notable for the quantity, quality, and technological advancement of their capital goods and for the high level of skills and education of their citizens. In contrast, poor societies are marked by the paucity of both capital and skills.

3. The process of economic growth, a continuing increase in the standard of living that persists over decades, can only come from growth in the productivity of labor. An increase in the standard of living requires, in turn, that a society devote a portion of its economic output to research and development of new technologies, to education and training of workers, and to the production of new capital goods. This can only happen if society is willing to forgo some immediate consumption of goods and services, freeing a portion of the current output of the economy for investment in future growth.

VII. Answer the questions:

1. What makes possible a higher standard of living?

2. How can productivity be increased?

3. What does an increase in the standard of living require?

VIII. Complete the sentences (1- 9) with the words (a-i):

a) salary b) projects c) competitive d) CEO e) pension f) rate g) customers

H) routine i) department.

1. Some workers travel to different countries to work on……….

2. A ……….makes important decisions and leads the company.

3. The currencies exchange……….usually changes every day.

4. In the past, companies tried to be more……..by offering a better price.

5. Companies often carry out market research to find out what ……..think.

6. A retired person is paid a ………. .

7. According to everyone in the .........., she is a very good boss.

8. Some of my work is quite interesting, but a lot of it is just ………. .

9. If you are paid monthly, rather than weekly, you receive a ………. . Оформите ваши ответы в данной таблице:

IX. Match (1-9) with (a-i) to make up sentences:

Оформите ваши ответы в данной таблице:

Variant V

I. Choose the correct item.

1. The company … to a new accounting system.

a) currently changes b) is currently changing

2. Our environmental officer … the opening speech at the conference.

a) will make   b) will be making

3. The construction industry … a boom in the years following the war.

a) experienced b) was experiencing

Оформите ваши ответы в данной таблице: