Question

When the amount of output produced by a given amount of inputs increases, the MOST LIKELY result is A) overall productivity rises. B) economic interdependence rises. Eliminate C) consumer spending on productive resources increases. D) business spending on productive resources increases.

Answer 1

The correct answer is A.

When the implementation of a production tecnique enables to increase the amount of output generated given a fixed endowmnet of inputs, then the company is generating a larger amount of output per unit of input than before.

This scenario is the definition of a productivity increase, and it means that the company is able to produce more efficiently (more production employing the same resources).