Question

A measure of productivity which reflects a combination of some or all of the resources used to obtain a certain output is:

1) Overhead productivity
2) Machine productivity
3) Multifactor productivity
4) Labour productivity
5) Materials productivity

Answer 1

Multifactor productivity is the measure of output generated with a combination of various inputs such as labor, material, and capital.

Step-by-step explanation:

The measure of productivity which reflects a combination of some or all of the resources used to obtain a certain output is known as multifactor productivity. This method takes into account various inputs, including labor, materials, and capital, rather than focusing on a single factor.

Besides measuring productivity by the amount produced per hour of work, other methods can include analyzing output per unit of input, such as GDP per worker.

An important factor that determines labor productivity is economies of scale, where industries obtain cost advantages due to their size, such as a bakery that can produce more bread per hour thanks to a larger industrial-size oven.