In general, productivity measures the effectiveness or efficiency of productive effort. Productivity can be measured in many different ways. Physical productivity measures the actual amount of a good or service produced (eg. tons of steel, or number of haircuts).
Productivity can also be measured in terms of the value of output. Most
commonly, productivity is measured as the amount of output produced
over a certain period of work (e g. output per hour); this is considered
a measure of labour productivity. But
other approaches are also possible, including measurements of capital
productivity (output relative to the value or physical quantity of
invested capital) and “total factor productivity” (which is an abstract
statistical measurement of the overall effectiveness of production).
