In general, productivity refers to the productive capacity of an input or group of inputs within a given period of time. A measure of productivity therefore conveys information on the efficiency with which resources are transformed into output. Productivity is measured by the ratio relating production to one or more factors of production used to produce it.

In fact, while productivity can be calculated in terms of output in the analysis of very specific processes, it is generally calculated in terms of dollars when aggregating processes or production sectors. In other words, productivity in monetary terms will seek to measure the monetary value of a combination of output generated by the resources used.

This video will show you all the ins and outs. Listen carefully and at the end of the video, a button will appear allowing you to access the entire exercise.

At the end of the exercise, you will have to watch the video that gives you the exercise solution, a worksheet with solution and additional information needed.

You will then be able to proceed to the viewing of Step 6, Make or Buy.

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