Which of the following best describes productivity?
A) Productivity is nominal GDP to a specific measure of output.
B) Productivity is real GDP to a specific measure of output.
C) Productivity is economic growth to a specific measure of output.
D) Productivity is the ratio of total output to a specific measure of input.
E) Productivity is the ratio of total input to a specific measure of output.

Question

Quizplus · Accepted Answer

Productivity is typically measured as the ratio of total output to a specific measure of input, such as labor, capital, or materials. This reflects how efficiently input is being used to generate output, and can help businesses and policymakers assess and improve their performance. Options A and B refer to GDP, which is a broader measure of economic activity and does not necessarily reflect productivity. Option C describes economic growth, which is a related but distinct concept that refers to the expansion of the economy over time. Option E is the inverse of the correct definition, measuring input per unit of output rather than output per unit of input.

Which of the Following Best Describes Productivity