Which one of the following statements concerning productivity is TRUE?
A) Accounting for several inputs simultaneously is not possible.
B) The low growth in service productivity has had little effect on overall productivity in countries such as Canada and the U.S..
C) Multifactor productivity is an index of the output provided by more than one of the resources used in production.
D) Productivity improvement is achieved by increasing the inputs used to produce a given level of output.

Question

Quizplus · Accepted Answer

Multifactor productivity measures the output per unit of combined inputs, such as labor, capital, and materials. Accounting for several inputs simultaneously is possible with multifactor productivity. The statement in option B is false as the low growth in service productivity has had a significant effect on overall productivity in countries such as Canada and the U.S. Option D is also false as productivity improvement is usually achieved by increasing the output produced by the same level of inputs or by producing the same output using fewer inputs.

Which One of the Following Statements Concerning Productivity Is TRUE