Labor productivity is defined as which measure?

Labor productivity is defined as which measure?

• A. Hours worked per employee per week.
• B. Total hours worked by all workers.
• C. Output per worker.
• D. The rate of inflation.

Answer: (C)

Labor productivity measures how much output is produced by each worker in a given period. That’s why the description "output per worker" best fits. It captures how efficiently labor resources are used, reflecting factors like skill, technology, equipment, and how work is organized. It’s not just about how many hours are worked (which would count input, not output) or the total hours, and it isn’t about inflation. For example, if ten workers produce 100 units in a day, productivity is 10 units per worker per day.

Labor productivity measures how much output is produced by each worker in a given period. That’s why the description "output per worker" best fits. It captures how efficiently labor resources are used, reflecting factors like skill, technology, equipment, and how work is organized. It’s not just about how many hours are worked (which would count input, not output) or the total hours, and it isn’t about inflation. For example, if ten workers produce 100 units in a day, productivity is 10 units per worker per day.