Labor productivity is measured as
A)the value of total output times total employment
B)total output of all workers employed
C)total output divided by the number of units of labor employed
D)total labor input divided by output
E)average output per unit of capital

Question

Quizplus · Accepted Answer

Labor productivity is measured as total output divided by the number of units of labor employed. This measures the efficiency of labor in producing goods or services. It is a common metric used by businesses and governments to assess economic growth and competitiveness. Option A is incorrect as it would give the total output in monetary terms, but not measure labor productivity. Option B is incorrect as it does not take into account the number of workers employed. Option D is incorrect as it would give the inverse of labor productivity. Option E is incorrect as it measures output per unit of capital and not labor.

Labor Productivity Is Measured as