Productivity involves
A)the number of new business of the same type entering the market.
B)the amount of money a business has to spend on improvements.
C)the ability of managers to create new businesses and products flexibly.
D)the efficiency measured by the relative output per unit of labor.

Question

Quizplus · Accepted Answer

Productivity is the efficiency with which a business uses its resources to produce goods or services. It is typically measured by the output per unit of labor, which means how much a business produces relative to how much it spends on labor. Therefore, the best choice is D, the efficiency measured by the relative output per unit of labor. The other choices (A, B, and C) are not directly related to productivity as they involve different aspects such as market competition, investment, and managerial skills.

Productivity Involves