If productivity is the amount of output that is generated per unit of input, what would the productivity of labor be if ABC Sprockets produced 2,000,000 sprockets in two weeks, while employing 10 workers each working 40 hours per week?

Question

Quizplus · Accepted Answer

The total hours worked by 10 workers in two weeks is 10 workers * 40 hours/week * 2 weeks = 800 hours. The productivity of labor is the total output divided by the total input (hours worked), which is 2,000,000 sprockets / 800 hours = 2500 sprockets per hour.

If Productivity Is the Amount of Output That Is Generated