How is productivity defined in economic terms?

Productivity, in economic terms, is defined as the relationship between the output produced and the inputs used to create that output. This concept captures how efficiently resources such as labor, capital, and materials are utilized to generate goods and services. When we say productivity is measured by units produced relative to inputs used, it emphasizes not just the quantity of output but also the efficiency with which inputs are converted into final products.

Higher productivity means that more output is being generated with the same or fewer inputs, reflecting better utilization of resources and often leading to higher overall economic performance, competitiveness, and profitability. This measure can be applied at various levels, including individual firms, industries, or even entire economies, providing valuable insights into their efficiency and potential for growth.

The other options do not encapsulate the essence of productivity. While the output of goods, total income generated, and the market value of goods reflect important economic metrics, they do not specifically denote the efficiency aspect that productivity focuses on. Productivity is fundamentally about balancing output with the input required to achieve it.