Define labor productivity and give a simple formula.

Define labor productivity and give a simple formula.

• A. Labor productivity is output per unit of labor input; formula: output divided by total labor hours or workers.
• B. Labor productivity is total GDP divided by population.
• C. Labor productivity is number of workers times hours worked.
• D. Labor productivity is profit per employee.

Answer: (A)

Labor productivity measures how much output is produced from each unit of labor input. It shows how efficiently labor is turned into goods and services. The simple way to express it is as output divided by total labor input, which can be measured in total hours worked or in the number of workers. For example, if a factory makes 100 units in 50 hours of labor, productivity is 100/50 = 2 units per hour. If there are 40 workers each working 8 hours (40 × 8 = 320 hours) and 200 units are produced, productivity is 200/320 ≈ 0.625 units per hour, or 5 units per worker. Other options describe different concepts: GDP per capita (GDP divided by population) reflects living standards, not labor efficiency; profit per employee focuses on profitability per worker; and multiplying workers by hours gives total labor input, not productivity.

Labor productivity measures how much output is produced from each unit of labor input. It shows how efficiently labor is turned into goods and services. The simple way to express it is as output divided by total labor input, which can be measured in total hours worked or in the number of workers.

For example, if a factory makes 100 units in 50 hours of labor, productivity is 100/50 = 2 units per hour. If there are 40 workers each working 8 hours (40 × 8 = 320 hours) and 200 units are produced, productivity is 200/320 ≈ 0.625 units per hour, or 5 units per worker.

Other options describe different concepts: GDP per capita (GDP divided by population) reflects living standards, not labor efficiency; profit per employee focuses on profitability per worker; and multiplying workers by hours gives total labor input, not productivity.