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Economic and management sciences

Grade 9

Sustainable growth and development

Module 11


Productivity can be described as the amount of goods and services produced per worker per hour. This refers to the ratio between real production and the number of inputs that are needed to manufacture it ; the productivity of labour increases, for example, if the output (the number of units that are produced) increases by 10% while the input (number of working hours) remains the same.

There is an important relationship between productivity and economic growth in the sense that improved productivity always is a prerequisite for economic growth.

For the effect of productivity on economic growth to be understood, it is necessary to distinguish between the following concepts:

1. EXTENSIVE ECONOMIC GROWTH refers to the extension of total production of goods and services irrespective of whether there is increased productivity per person. According to this, extensive economic growth is possible even though there may be no increase in production per person

2. INTENSIVE ECONOMIC GROWTH refers to the increase in production per person (or per capita). When intensive economic growth occurs, total production increases more rapidly than the population. Per capita growth (or income) therefore is an indicator of economic growth.

When a community’s production of goods and services expands more rapidly than the population increases, real per capita income rises. This generally means that the economic prosperity of the population will increase, which reflects economic growth.

Therefore: growth in production that is larger than growth in population leads to:

  • rise in real per capita income, which leads to
  • increased economic growth and
  • economic prosperity

Inversely, a decrease in real per capita income will occur if the population increase is greater than the increase in production. Economic decline, the opposite of intensive growth, will therefore occur.

Therefore: growth in production that is smaller than growth in population leads to

  • decline in real per capita income, which leads to:
  • economic decline and
  • decline in economic prosperity (rising poverty)

With increased productivity, the products of a country become more competitive on international markets and this can lead to increased exports. The reason for this is that

increased productivity can absorb wage increases, which makes it possible for business enterprises to keep the prices of their products stable.

Activity 1: productivity of labour

Identify TEN factors that could lead to improvement in labour productivity. Provide a full explanation of each one.

  • Also provide a report for presentation to the class.

Activity 2: labour productivity in south africa [lo 2.4]

Do you think labour productivity in South Africa is of a standard that makes it possible to compete effectively on international markets? Motivate your answer so that points of view can be debated in the class.


  • Gwartney, James D ECONOMICS, Private and Public Choice, Sixth Edition
  • Stroup, Richard L The Dryden Press, Harcourt Brace College Publishers, Orlando, 1992


Learning outcomes (Los)
LO 2
SUSTAINABLE GROWTH AND DEVELOPMENT The learner will be able to demonstrate an understanding of sustainable growth, reconstruction and development, and to reflect on related processes.
Assessment standards (ASs)
We know this when the learner:
2.1 discusses how the national budget, regional and international agreements can be used to facilitate sustainable growth and development;
2.2 investigates and debates the successes and shortcomings of the RDP;
2.3 explains the role of savings and investments in economic prosperity and growth;
2.4 discusses productivity and growth and its effects on economic prosperity, growth and global competition.



Factors that could lead to improvement in labour productivity (the concepts should be defined clearly and explained adequately).

1. Climate

2. Own culture

3. Renumeration of wages

4. Working hours

5. Working conditions

6. Health and strength

7. Intelligence

8. Training and education

9. Social attitude

10. Organisation of labour


Groups are to state their points of view regarding labour productivity in South Africa, taking note particularly of conditions or situations in their own environment where contractors do not operate effectively and workers do not provide maximum input to benefit their employers.

Questions & Answers

Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
is Bucky paper clear?
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
so some one know about replacing silicon atom with phosphorous in semiconductors device?
s. Reply
Yeah, it is a pain to say the least. You basically have to heat the substarte up to around 1000 degrees celcius then pass phosphene gas over top of it, which is explosive and toxic by the way, under very low pressure.
Do you know which machine is used to that process?
how to fabricate graphene ink ?
for screen printed electrodes ?
What is lattice structure?
s. Reply
of graphene you mean?
or in general
in general
Graphene has a hexagonal structure
On having this app for quite a bit time, Haven't realised there's a chat room in it.
what is biological synthesis of nanoparticles
Sanket Reply
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
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