Which of the following statements is true of productivity?
A) Partial productivity compares the quantity of output produced with the cost of all inputs used.
B) Productivity will increase when the partial productivity is high.
C) Prices of inputs are incorporated in the partial productivity ratio.
D) Partial productivity compares the quantity of output produced with the quantity of all inputs used.

Question

Quizplus · Accepted Answer

Partial productivity measures the efficiency of a particular input in producing output. When the partial productivity of an input is high, it means that the input is being used efficiently, leading to an increase in overall productivity. This is because the more efficiently each input is used, the higher the output produced with the same amount of inputs, or the less input is needed to produce the same amount of output.

Which of the Following Statements Is True of Productivity