In a particular country in 2008, the average worker had to work 40 hours to produce 100 units of output. In that same country in 2018, the average worker needed to work 35 hours to produce 94.5 units of output. In that country, the productivity of the average worker
A)increased by 2 percent between 2008 and 2018.
B)increased by 8 percent between 2008 and 2018.
C)remained unchanged between 2008 and 2018.
D)decreased by 2 percent between 2008 and 2018.

Question

Quizplus · Accepted Answer

Productivity is measured as output per unit of input, in this case, output per hour worked.

In 2008, the average worker produced 100/40 = 2.5 units per hour. 
In 2018, the average worker produced 94.5/35 = 2.7 units per hour.

Therefore, productivity increased from 2.5 units per hour in 2008 to 2.7 units per hour in 2018.

To calculate the percentage increase:

(2.7-2.5)/2.5 x 100% = 8%

Therefore, the correct answer is B, productivity increased by 8% between 2008 and 2018.

In a Particular Country in 2008, the Average Worker Had