Assume that the production function for an economy is represented by Y = AN. Which of the following expressions is equal to labour productivity for this economy?
A) A/N.
B) AN.
C) 1/A.
D) A.
E) Y/A.

Question

Quizplus · Accepted Answer

Labour productivity is defined as output per unit of labor, which in this case is represented by Y/N. Given the production function Y = AN, dividing both sides by N gives Y/N = A, indicating that A represents labor productivity in this context.

Assume That the Production Function for an Economy Is Represented