Which term refers to the rate at which inputs are processed into outputs?

The correct answer is productivity, which specifically measures the effectiveness of turning inputs into outputs. It quantifies how much output is produced per unit of input over a given period, essentially reflecting the relationship between what is put into a process (like labor, materials, and machinery) and what is achieved (the final products or services). High productivity indicates that a business is using its resources effectively to generate more outputs, which can lead to increased profitability and competitive advantage.

Efficiency, while related, refers to the degree to which resources are utilized adequately, and does not directly encompass the output aspect. Production capacity focuses more on the maximum output that can be achieved under normal conditions, rather than the process of turning inputs into outputs. Output rate describes the quantity of goods produced over a specific time but lacks the broader context of input measurement that productivity encompasses.