Question

What is productivity?

A. Quantity of input per unit of output.

B. Quantity of output per unit of input.

C. Quality of output per unit of input.

D. Quality of input per unit of output.

Answer 1

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.

Answer 2

The correct answer is B. Productivity is the quantity of output per unit of input.

Step-by-step explanation:

Productivity is basically defined as the relationship between production and the factors of production used. Production is defined as the goods produced (quantity of products produced). The factors of production are defined as people, machines, materials and others. The greater the relationship between the quantity produced by factors used, the greater the productivity.

Productivity is often measured by worker, but in many situations where personnel costs are a small percentage of total costs, account has to be taken of the other factors necessary to produce the desired results. The level of productivity of an economic agent (person, company, country, etc.) is, as a general rule, one of the best indicators for measuring the level of efficiency and effectiveness of the same.