Today, we frequently hear about the productivity of American labor compared to the productivity of workers in other countries.
Producers are continually interested in increasing the productivity of labor and other inputs.
An increase in productivity occures when a given amount of inputs can produce more output. An increase in productivity also occurs when fewer inputs produce the same output. Throughout history individuals have identified problems and created inventions that would increase productivity and ultimately benefit consumers and producers. Explain how increases in productivity have improved the production process. Explain the impact of increasing productivity on consumers and producers.