Productivity Productivity is a measure of real output in relation to the amount of toil or effort put in by labor and capital.
Average productivity is output per unit of input.
Technology Technology is the method of production. Labor-intensive technologies employ proportionately more labor than capital. With labor-intensive technologies, capital is incidental to production. Some production methods have a fixed technical coefficient of capital to labor, e.g. the proverbial grave digger and his shovel. An increase in the output of graves requires not only another grave digger but also another shovel.