In general, productivity is a measure of
A)potential output.
B)the total amount of output that the economy is capable of producing.
C)the economy's ability to increase real GDP per capita.
D)real GDP as a function of total employment.
E)the amount of output that the economy produces per unit of input.

Question

Quizplus · Accepted Answer

Productivity is typically measured as the amount of output produced per unit of input (e.g. labor, capital, etc.). It is a measure of how efficiently resources are being used to create goods and services. The other options are not necessarily incorrect, but they do not accurately capture the definition of productivity.

In General, Productivity Is a Measure of