What does productivity measure?
A) The total value of all goods and services produced by a national economy
B) How much a system produces with the resources needed to produce it
C) How much output is necessary to produce a certain level of demand
D) The standard of living relative to purchasing power parity
E) How much gross national product results from inputs of labour

Question

Quizplus · Accepted Answer

Productivity measures how much a system produces with the resources used to produce it. It is a measure of efficiency and is expressed as the ratio of output to input.

Note: The other options describe different economic concepts. A is GDP, C is output elasticity, D is purchasing power parity, and E is GNP.

What Does Productivity Measure