Question

Productivity basically measures the ratio of total output to a weighted average of inputs.

• A. True
• B. False

Answer 1

The correct option is A

True

True. Productivity measures the ratio of total output to a weighted average of inputs. Economists typically look at two measures of productivity: labor productivity, which calculates the amount of output per unit of labor, and total factor productivity, which measures output per unit of total inputs (typically of capital and labor).