In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker
A)decreased by 1.7 percent between 1998 and 2008.
B)remained unchanged between 1998 and 2008.
C)increased by 4.75 percent between 1998 and 2008.
D)increased by 6.25 percent between 1998 and 2008.

Question

Quizplus · Accepted Answer

Productivity is calculated as output per hour worked. In 1998, productivity was 40 units/25 hours = 1.6 units per hour. In 2008, it was 68 units/40 hours = 1.7 units per hour. The increase in productivity is (1.7 - 1.6) / 1.6 = 0.0625, or 6.25%.

In a Particular Country in 1998, the Average Worker Needed