What is the relationship between productivity and total output in an economy?

The relationship between productivity and total output in an economy is reflected in the understanding that productivity measures how efficiently inputs are transformed into outputs. When productivity increases, it means that more goods and services are being produced per unit of input (such as labor or capital). This efficiency enables an economy to generate greater total output using the same amount of resources or even fewer.

Higher productivity can stem from various factors, such as advancements in technology, improved workforce skills, or better management practices. Each of these improvements allows workers and machines to produce more within a given time frame, leading to an increase in overall output. Thus, by boosting productivity, an economy can enhance its total output, which contributes to economic growth and potentially higher standards of living.

In contrast, the other choices suggest relationships that are contrary to this fundamental economic principle. For instance, lower productivity cannot rationally lead to higher total output; if resources are being used less effectively, less output would logically result. Similarly, the notion that higher productivity results in lower total output misunderstands the relationship; increased efficiency inherently leads to increased output. Lastly, the idea that productivity has no effect on total output ignores the direct correlation between how efficiently resources are utilized and the quantity of goods produced.