Labor productivity is measured as the
A)Dollar value of output per unit of labor.
B)Output per labor-hour.
C)Hourly wage rate divided by output per labor-hour.

Question

Quizplus · Accepted Answer

Labor productivity is typically measured as output per labor-hour, which means how much output (goods or services) each worker can produce in one hour of work. This measure helps to understand how efficient a workforce is at producing output and provides insights into how to increase productivity to achieve higher economic growth. Option A is incorrect as it only measures the dollar value of output per unit of labor without taking into account the time taken to produce it. Option C is incorrect as it divides the hourly wage rate by output per labor-hour, which is not a measure of labor productivity itself but rather a ratio of two different variables.

Labor Productivity Is Measured as the