posted by Anonymous .
Explain carefully the meaning and importance of the term “productivity”
- Macro Economics - Ms. Sue
Macro Economics -
Definition: It is measure of the efficiency of a person, machine, factory, or a system, in converting inputs into useful outputs.it is is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period.
Importance:Productivity is a critical determinant of cost efficiency