A 50% decrease 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 50% decrease in both inputs and outputs means that the production level has decreased, but since the ratio of outputs to inputs remains the same, productivity does not change.

A 50% Decrease in Both Inputs and Outputs Is A(n)