Production is defined as the means by which resources (whether tangible, such as, raw materials or intangible, such as, ideas/information) are transformed into goods (tangible) and services (intangible).

Productivity however, is the measure of the efficiency of the production process, and is calculated as the ratio of what is produced to what is required to produce it. Recall, the tangible resources needed for production are land, labour and capital; therefore the output/goods and services produced via these resources would be measured as output per acre of land, per hour of labour or as a yearly percentage for capital respectively.

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