The total of all outputs produced by the transformation process divided by the total of the inputs is:
A) utilization.
B) greater in manufacturing than in services.
C) defined only for manufacturing firms.
D) multifactor productivity.
E) single-factor productivity.

Question

Quizplus · Accepted Answer

The total of all outputs produced by the transformation process divided by the total of the inputs is known as multifactor productivity. It is not defined only for manufacturing firms, and can be used to measure productivity in both manufacturing and service industries. Utilization refers to the extent to which resources are being used to produce goods or services, and single-factor productivity refers to the ratio of output to a single input, such as labor or capital. Therefore, options A, B, and E are incorrect.

The Total of All Outputs Produced by the Transformation Process