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Productivity In economics, productivity is the amount of output created (in terms of goods produced or services rendered) per unit input used. For instance, labour productivity is typically measured as output per worker or output per labour-hour. With respect to land, the "yield" is equivalent to "land productivity". Within Capitalism, productivity increases lead to higher standards of living for the general popualtion. As Henry Hazlitt explains in Economics in One Lesson, increasing production reduces prices, and therefore goods become more widely available. Automobiles for example, where hand made initially, and only available to the wealthy. As productivity increased, and the price of automobiles fell, they became widely available to the general population.
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