Productivity is the measure of output produced per unit of input, important for economic growth, typically expressed as GDP per worker or hour worked. It is a measure of efficiency and crucial for gauging an economy's performance. therefore, option C is correct
The BEST definition of productivity is the amount of output produced per unit of input, which is a measure of efficiency in producing goods and services. In economic terms, productivity is often expressed as the level of GDP (output) per worker or GDP per hour worked (input). This means that productivity measures how much work is accomplished by a worker within a certain period.
Productivity is crucial for economic growth and is a key indicator of an economy's health. For example, if a Canadian worker can make 10 loaves of bread in an hour compared to a U.S. worker who can make only two loaves in the same time frame, the Canadian worker is considered more productive.
Moreover, sustained long-term economic growth stems from increases in worker productivity. As productivity improves, more can be accomplished without increasing the amount of time or number of workers, which in turn can free up resources to be used elsewhere in the economy.
While labor productivity can be a straightforward benchmark, by looking at the amount produced per hour of work, other ways to measure productivity include efficiency in resource usage, technological innovation, and improvements in the skills of the workforce.