Productivity Is Defined as the

question 156

Multiple Choice

Productivity is defined as the

• A)amount of goods and services produced from each unit of labor input.
• B)number of workers required to produce a given amount of goods and services.
• C)amount of labor that can be saved by replacing workers with machines.
• D)actual amount of effort workers put into an hour of working time.

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Definitions:

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Annual Interest Rate

The percentage of a sum of money charged for its use, calculated on an annual basis.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, hence, eroding purchasing power.

Real Rate of Return

The rate of return on an investment after adjusting for inflation, showing the actual increase in purchasing power.