Answer to Question #96186 in Macroeconomics for Mary Thompson

Question

3. The value of manufactured goods (things made in factories and plants) produced each year in the United States has more than doubled over the last 30 years. Also over the last 30 years the number of Americans employed in manufacturing has significantly decreased. What does this tell you about the productivity of workers in the manufacturing industry?

Answer 1

 

The Productivity of Workers in Manufacturing Industry.

When the value of manufactured goods doubles time after time in a factory or plant and does not drop when the number of  workers is reduced indicates that; the value that each employed person creates per unit of his/her input is high. This may be as a result of the workers increasing the education/skills or specialization of the workforce. Therefore the amount of work in production is limited to only a few workers whose labor productivity is  high.

                                   Reference

BCcampus; <http://opentextbc.ca/principlesofeconomics/chapter/20-2-labor-productivity-and-economic-growth/