Which statement best defines productivity?
A) Productivity is the ability of a company to generate profit.
B) Productivity is the quantity of goods and services that a nation can produce in a year.
C) Productivity is the quantity of goods or services that a worker can produce in one hour.
D) Productivity is the ability of a company to produce goods and services.

Question

Quizplus · Accepted Answer

Productivity is a measure of how efficiently inputs (such as labor, materials, and capital) are transformed into outputs (goods or services). The most common way to measure productivity is by the quantity of goods or services that a worker can produce in a given amount of time, usually per hour. Therefore, choice C is the best definition of productivity. Choices A and D are too narrow and do not capture the full meaning of productivity. Choice B refers to a related concept, gross domestic product (GDP), which measures the total value of goods and services produced by a nation in a year, but it does not measure productivity in terms of how efficiently those goods and services are produced.

Which Statement Best Defines Productivity