Productivity Definition
In economics, Productivity is the amount of output created (in terms of goods produced or services rendered) produced per unit input of used. For instance, labor productivity is typically measured as output per worker or output per labor-hour. With respect to land, the "yield" is equivalent to "land productivity". Some economists write of "capital productivity" (output per unit of capital goods employed), the inverse of the capital/output ratio. "Total factor productivity," sometimes called multifactor productivity, also includes both labor and capital goods in the denominator (weighted by their incomes). Unlike labor productivity, the calculation of both capital productivity and total factor productivity are dependent on a number of doubtful assumptions and is subject to the Cambridge critique.