Which of the Following Best Describes Productivity

question 178

Multiple Choice

Which of the following best describes productivity?

• A) Productivity is nominal GDP to a specific measure of output.
• B) Productivity is real GDP to a specific measure of output.
• C) Productivity is economic growth to a specific measure of output.
• D) Productivity is the ratio of total output to a specific measure of input.
• E) Productivity is the ratio of total input to a specific measure of output.

Understand the relationship between economic profit and cost-minimization/profit-maximization in resource allocation.

Understand the principle of profit maximization and how it is affected by input costs and output levels.

Grasp the concept of cost-minimization for firms using multiple inputs.

Learn the rule for employing inputs in a manner that the marginal product per dollar spent on each is equalized across all inputs.

---

Definitions:

Downsizing

The process of reducing the number of employees within an organization for economic or strategic reasons.

Restructuring

The corporate action of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

Insidious Consequences

Negative outcomes that gradually and subtly develop over time, often as a result of certain actions or decisions.

Organizational Restructuring

The act of realigning or changing the organizational structure, processes, or cultures of a company to improve efficiency, effectiveness, or adapt to new strategies.