Concept of Total, Average And Marginal Productivity - SS2 Economics Past Questions and Answers - page 1
What is total productivity?
The amount of output produced per unit of input.
The change in output that results from a change in the level of input.
The total amount of output that is produced by all inputs.
What is average productivity?
The amount of output produced per unit of input.
The change in output results from a change in the level of input.
The total amount of output that is produced by all inputs.
What is marginal productivity?
The amount of output produced per unit of input.
The change in output that results from a change in the level of input.
The total amount of output that is produced by all inputs.
Which productivity concept measures the overall efficiency of production?
Total productivity.
Average productivity.
Marginal productivity.
(Total productivity is important because it provides a measure of the overall efficiency of production. )
Which productivity concept measures the additional output that can be produced by using an additional unit of input?
Total productivity.
Average productivity.
Marginal productivity.
What is the formula for calculating average productivity?
Average productivity = Total output / Number of units of input used. OR
AP = Q/I(k, l, t)
Where Q = Total output or quantity, I(k, l, t) = units of inputs for a specific factor of production, k= capital. l = labour. t = technology
Why is marginal productivity important?
Marginal productivity is important because it provides a measure of the additional output that can be produced by using an additional unit of input.
What are the three inputs considered when calculating total productivity?
The three inputs considered when calculating total productivity are labour, capital, and raw materials.