Frequently Asked Questions
How do we measure productivity?
How do we measure output and input?
1. How do we measure productivity?
There are three measures of productivity: a. The Total Productivity Measure (TPM) is the ratio of real gross output to all real inputs. b. The Partial Productivity Measure (PPM) is the ratio of real gross output to one type of real input. c. The Total Factor Productivity (TFP) is the ratio of net output to the sum of labour and capital inputs, where net output is defined as the difference between gross output and intermediate materials.
2. How do we measure output and input?
Output can be measured as Gross Output, either as physical quantities, or as fixed prices or even at current prices. Alternatively it can be measured as Value Added at fixed or current prices. Input can be measured either as physical quantities or at fixed prices or even at current prices.
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Ministry of Labour, Welfare and Social Insurance
Cyprus Productivity Centre