ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource. It is often calculated for the economy as a ratio of gross domestic product (GDP) to hours worked.

Detailed explanation-3: -Output is measured primarily as an index of product revenues, adjusted for price changes. Adjustments are made to ensure that output that is sold to another business within the same measuring unit (industry or sector) is excluded to prevent counting it more than once.

Detailed explanation-4: -A commonly applicable example of productivity is the measure of output per worker or output per worker per hour.

Detailed explanation-5: -Labour productivity is defined as output produced per unit of labour input.