Suppose that an economy produces 2400 units of output, employing the 60 units of input, and the price of the input is $30 per unit. Refer to the information above. The level of productivity in this economy is:
A) 20
B) 30
C) 40
D) 50

Question

Quizplus · Accepted Answer

Productivity is defined as the ratio of output to input. So, productivity = Output/Input = 2400/60 = 40. Therefore, the level of productivity in this economy is 40.

Suppose That an Economy Produces 2400 Units of Output, Employing