Labor productivity increases when
A) the average number of hours people work goes up.
B) the unemployment rate decreases.
C) the average output produced per worker during a specified time period increases.
D) the average output produced per worker during a specified time period decreases.

Question

Quizplus · Accepted Answer

Labor productivity is a measure of the output per worker in a given time period. When the average output produced per worker during a specified time period increases, the labor productivity increases. Hence, option C is the correct choice. Option A is incorrect because an increase in the number of hours worked does not necessarily lead to an increase in labor productivity. Option B is incorrect because a decrease in the unemployment rate does not directly affect labor productivity. Option D is incorrect because a decrease in the average output produced per worker during a specified time period would result in a decrease in labor productivity.

Labor Productivity Increases When