When does productivity increase?
A) inputs increase while outputs remain the same
B) inputs decrease while outputs remain the same
C) outputs decrease while inputs remain the same
D) inputs and outputs increase proportionally
E) none of the above

Question

Quizplus · Accepted Answer

Productivity increases when inputs decrease while outputs remain the same. This can be achieved through process improvements, automation, or simplification of tasks. When fewer resources are used to produce the same output, productivity increases. On the other hand, if inputs increase while outputs remain the same, productivity decreases, as more resources are being used to produce the same output. Similarly, if outputs decrease while inputs remain the same, productivity also decreases. If both inputs and outputs increase proportionally, there is no change in productivity.

When Does Productivity Increase