What Does Productivity Measure

question 209

Multiple Choice

What does productivity measure?

• A) The total value of all goods and services produced by a national economy
• B) How much a system produces with the resources needed to produce it
• C) How much output is necessary to produce a certain level of demand
• D) The standard of living relative to purchasing power parity
• E) How much gross national product results from inputs of labour

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Definitions:

Intervention Effects

The impact of external actions, often by governments or institutions, intended to alter an outcome or correct a market failure.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of production to determine the price of a product, without flexibility.

Pricing Strategies

The methods and tactics businesses employ to price their products or services effectively to attract customers and achieve profitability.

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable cost, allowing for adjustments based on market conditions.