In economics, productivity refers to the ratio of what is generated to what is needed to manufacture it. This ratio is usually expressed as an average, with the total production of a group of goods divided by the total input of labour or raw materials, for example. The amount of output divided by the volume of inputs is generally referred to as productivity. In other words, it assesses how effectively a country's development inputs, such as labour and capital, are used to generate a given amount of output.
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