country's labor cost may be absolutely high and yet relatively low.

Question

Quizplus · Accepted Answer

A country's labor costs may be high in terms of absolute numbers (e.g. wages), but still relatively low when compared to the productivity and output of the workforce. This is known as labor productivity, which is a measure of the amount of output produced per unit of labor input. If a country's labor force is highly skilled and efficient, they may be able to generate a larger amount of output per hour worked, making their labor cost relatively low in comparison to their productivity.

Country's Labor Cost May Be Absolutely High and Yet Relatively