Question

Shelly's company produces computers, phones, and tablets. About six months ago, Shelly began to keep track of number of hours worked at the company, and the resulting output. When she compared the results, she found that the number of workers (and the hours they worked) remained relatively steady over the past six months; however, the work site's output improved considerably. This indicates that:
A. the company's prices have increased faster than the wages paid to workers.B. productivity at the work site has increased.C. the work site sold off some of its excess inventory.D. the company should hire more workers.

Answer 1

Answer: B.) productivity at the work site has increased.

Explanation: The considerable increase in output at the work site while still maintaining the same number of workers and hours worked over the last six months shows that the productivity at the work site has increased. Productivity which is usually compares unit output to the rate of inout per unit. The effectiveness of the input or production effort is used to measure the degree of productivity. Therefore, when the output derived by maintiaing the same unit of input increases, then productivity has increased. If it decreases, then productivity has decreased.