Final answer:
An increase in productivity means more goods are produced with the same or fewer inputs, and the correct choice is B) An increase in productivity results when more goods can be produced using the same amount of inputs.
Step-by-step explanation:
The relationship between inputs, outputs, and changes in the level of productivity is such that an increase in productivity occurs when more goods or services can be produced using the same amount or a lower amount of inputs. The correct answer to the question is: B) An increase in productivity results when more goods can be produced using the same amount of inputs.
Productivity measures how efficiently inputs are being used to produce outputs. If a company can produce more output without increasing the input, it means that it has become more productive. For instance, if a call center salesperson can handle more calls without the need for additional telephones or computer terminals, or if the faculty of agriculture develops a technology that enhances wheat production, both scenarios demonstrate an increase in productivity.