Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The output produced per unit of capital used
B
The total output produced by a workforce
C
The efficiency of land use in agriculture
D
The relationship between income and consumption
Understanding the Answer
Let's break down why this is correct
Answer
Capital productivity refers to how effectively a business uses its capital, like machinery and buildings, to produce goods or services. It measures the output generated for each unit of capital invested. For example, if a factory uses a million dollars worth of equipment and produces 500,000 widgets, the capital productivity would be 0. 5 widgets per dollar of capital. High capital productivity means that the business is getting a lot of output for the amount of money spent on equipment, which is important for profitability and growth.
Detailed Explanation
Capital productivity measures how much output we get from the capital we use. Other options are incorrect because This option talks about the total output from workers, not capital; This choice is about land use in farming, not capital.
Key Concepts
capital productivity
Topic
Economic Productivity Classification
Difficulty
easy level question
Cognitive Level
understand
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