A 100% increase in both inputs and outputs is a(n):
A) increase in production with no change in productivity.
B) increase in productivity.
C) decrease in production with no change in productivity.
D) decrease in productivity.

Question

Quizplus · Accepted Answer

A 100% increase in both inputs and outputs means that the level of production has doubled, but there has been no increase in productivity (i.e. the efficiency of the production process has not improved). Therefore, the best choice is A, which indicates an increase in production with no change in productivity.

A 100% Increase in Both Inputs and Outputs Is A(n)