What is defined as the ratio of inputs to outputs in production?

The correct answer is productivity, which is defined as the ratio of inputs to outputs in production. In economics, productivity is a measure of how efficiently production processes convert inputs, such as labor and capital, into outputs, typically goods and services. A higher productivity level indicates that more output is being generated from a given set of inputs, leading to increased efficiency and value creation in the economy.

Understanding productivity is crucial because it directly impacts economic growth, living standards, and competitiveness in the market. For example, if a factory can produce more widgets with the same amount of labor and raw materials, its productivity enhances, which can lead to higher profits and potentially lower prices for consumers.

In contrast, other choices do not accurately define the ratio of inputs to outputs. Market failures refer to instances where free markets do not allocate resources efficiently, economic growth relates to the increase in a country's output over time, and 'contest' is not a term commonly associated with production metrics in economics.