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The amount of output of any aspect of production, such as labor, equipment, capital, per unit of input. Output can be measured in various ways: output per acre for land, yearly percentage for capital, output per hour for labor, and so on. A high national productivity typically indicates efficient production of goods and services and a competitive economy; however, growth in productivity can occur during periods of recession and increased unemployment as businesses cut jobs and seek to become more efficient. Many factors such as product, process, capacity, external influences, quality, and labor force affect productivity.
Productivity differs from measures of allocative efficiency, which take into account both the value of what is produced and the cost of inputs used, and although closely related, it is ...