Question

Productivity can be improved by

• A. Increasing inputs for constant outputs
• B. Decreasing outputs for constant inputs
• C. Increasing inputs and outputs both in same proportion
• D. Decreasing inputs for constant outputs

Answer 1

Answer:

D. Decreasing inputs for constant outputs

Productivity can be improved by increasing output for the same inputs or decreasing inputs for the same outputs. The ratio of output and input determines productivity, where output is product quantity and input is resources. The equation for productivity is Productivity = Output/Input.