Productivity

question 5

Multiple Choice

Productivity

• A)Rises when the value of output rises relative to the cost of inputs.
• B)Falls when the value of output rises relative to the cost of inputs.
• C)Rises when the ratio of output to input increases.
• D)Falls when factors of production cost more.

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Definitions:

Total Revenue

The total amount of money a firm receives by selling goods or services.

Price Elastic

Describes the responsiveness of the quantity demanded or supplied of a good to a change in its price; high elasticity indicates a significant response to price changes.

More Substitutes

The increase in alternative products or services that can replace or serve as options to a current product.

Demand Is Inelastic

A situation where the quantity demanded of a product changes very little in response to changes in its price.