ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Productivity is a measure of economic performance that compares the amount of goods and services produced (output) with the amount of inputs used to produce those goods and services.

Detailed explanation-2: -The productivity of a production process can be defined as the efficiency with which goods and services are produced. Productivity is typically measured by comparing an aggregate output with a single input or comparing an aggregate input with an aggregate output, over time.

Detailed explanation-3: -At the corporate level, productivity is a measure of the efficiency of a company’s production process, it is calculated by measuring the number of units produced relative to employee labor hours or by measuring a company’s net sales relative to employee labor hours.

Detailed explanation-4: -Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.