For consideration of such issues as labor's productivity growth nationwide, the relevant measure is the:
A) marginal product of labor.
B) average product of labor.
C) total product of labor.
D) wage.
E) cost of capital.

Question

Quizplus · Accepted Answer

The relevant measure for labor's productivity growth is the average product of labor, which is the total output produced by a certain number of workers divided by the number of workers. This measure gives an indication of how much output each worker is producing on average, and hence, how productive labor is as a whole. The marginal product of labor and total product of labor are also important measures, but they do not provide an overall indication of labor productivity growth. The wage and cost of capital are not necessarily linked to productivity growth and are not relevant measures for this issue.

For Consideration of Such Issues as Labor's Productivity Growth Nationwide