Question

Why is productivity important to businesses and to society as a whole?

Answer 1

Answer :

Productivity measures how efficiently resources are employed. Ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor, in this case productivity measures real GDP per hour of labor. Usually an average.

Productivity is the ratio of outputs to inputs, or (goods + services)/(labor + capital + materials + energy). It is important business or companies because it determines their profitability and survival.

Productivity is also important to the nation or to our society because, higher the productivity is, the more available goods and services are to us, and the higher our standard of living.