The measure of how effectively a business converts inputs into outputs is known as what?

• A. Publicity
• B. Product Line
• C. Productivity
• D. Public Goods

Answer: (C)

Productivity is the measure of how effectively a business converts inputs into outputs. It captures efficiency by comparing the amount of output produced to the resources used, such as labor, materials, and equipment. Higher productivity means more output per unit of input, signaling better use of resources. For example, if a factory makes 100 units with 50 hours of labor, its productivity is 2 units per hour. The other options describe different ideas: publicity relates to promoting products, a product line is the range of products a company offers, and public goods are resources available to everyone. None of these gauge how efficiently inputs are turned into outputs.