Question

Which answer choice correctly states the relationship between inputs, outputs, and changes in the level of productivity?

a) An increase in productivity results when more goods can be produced by increasing the amount of inputs.
b) An increase in productivity results when more goods can be produced using the same amount of inputs.
c) A decrease in productivity results when more goods can be produced using the same amount of inputs.
d) A decrease in productivity results when more goods can be produced by increasing the amount of inputs.

Answer 1

An increase in productivity results when more goods can be produced using the same amount of inputs.

Step-by-step explanation:

The correct answer is b) An increase in productivity results when more goods can be produced using the same amount of inputs.

Productivity is a measure of output per unit of input. When productivity increases, it means that more goods or services are being produced with the same amount of inputs, such as labor or capital. This can be achieved through improvements in technology, efficiency, or skills, which allow for greater output without increasing the amount of inputs.

For example, if a factory introduces new equipment that automates certain tasks, the workers can produce more goods without needing to hire additional employees or increase the amount of raw materials used.