Engine General (Supplementary) USCG Question #1553 (Set 28)

To maximize the profitability of a shipping company, in goal-setting ships are often asked to increase productivity. Which of the following scenarios represents an actual decrease in productivity?

Official USCG Answer & Rule Citation

Correct Answer: Option D — Decrease the output and increase the total input costs.

Productivity is defined as the ratio of output to input. A decrease in productivity occurs when the total output is reduced while simultaneously increasing the total input costs. This represents an inefficient use of resources, which is detrimental to the profitability and operational success of any shipping company.

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