It's a measure of the output provided by a given input.

Study for the Finance and Investment Challenge Test. Approaches include flashcards and multiple-choice questions with hints and explanations. Ready yourself to ace the exam!

Multiple Choice

It's a measure of the output provided by a given input.

Explanation:
Productivity is about how much output you get from a given amount of input. It measures how effectively resources are turned into goods or services, so increasing output while holding inputs constant raises productivity, and using more inputs for the same output lowers it. Efficiency is more about doing things with as little waste or as little cost as possible, not strictly about the ratio of output to input. Yield typically refers to the proportion of good or acceptable units out of total units produced, rather than overall output per input. Output alone looks at total production, without tying it to the amount of input used. Because the statement describes output relative to the input used, it best matches productivity.

Productivity is about how much output you get from a given amount of input. It measures how effectively resources are turned into goods or services, so increasing output while holding inputs constant raises productivity, and using more inputs for the same output lowers it.

Efficiency is more about doing things with as little waste or as little cost as possible, not strictly about the ratio of output to input. Yield typically refers to the proportion of good or acceptable units out of total units produced, rather than overall output per input. Output alone looks at total production, without tying it to the amount of input used. Because the statement describes output relative to the input used, it best matches productivity.

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