Labor productivity is computed as
A) per capita real GDP divided by the number of workers.
B) real GDP divided by population.
C) per capita real GDP divided by population.
D) real GDP divided by the number of workers.

Question

Quizplus · Accepted Answer

Labor productivity measures the amount of output (real GDP) produced per worker. Therefore, the best choice is D, which is real GDP divided by the number of workers. A, B, and C are all incorrect as they do not consider the number of workers, which is essential in calculating labor productivity.

Labor Productivity Is Computed as