Which one of the following statements concerning measures of productivity is FALSE?
A) The number of insurance claims processed per week by employees in an insurance company is a valid measure of productivity.
B) Productivity is measured as the ratio of outputs divided by inputs.
C) Multifactor measures of productivity must convert the quantities being measured to a common unit of measure such as dollars.
D) Measures of labour productivity are generally more informative than multifactor measures of productivity.

Question

Quizplus · Accepted Answer

Measures of labour productivity only consider the amount of labour input and do not take into account other factors such as capital, materials, and energy. Multifactor measures of productivity are generally more informative as they consider all inputs and their impact on output.

Which One of the Following Statements Concerning Measures of Productivity