Asked by Canon Graef on Jun 17, 2024
Verified
For consideration of such issues as labor's productivity growth nationwide, the relevant measure is the:
A) marginal product of labor.
B) average product of labor.
C) total product of labor.
D) wage.
E) cost of capital.
Labor's Productivity Growth
Refers to the increase in the amount of goods and services produced by one hour of labor.
Marginal Product
The additional output that is produced by using one more unit of a variable input.
Average Product
This measures the productivity of inputs by dividing total production by the number of inputs, indicating the efficiency of input use.
- Become familiar with the importance and evaluation of labor's marginal product.
Verified Answer
BM
Blessing MbunyuzaJun 21, 2024
Final Answer :
B
Explanation :
The relevant measure for labor's productivity growth is the average product of labor, which is the total output produced by a certain number of workers divided by the number of workers. This measure gives an indication of how much output each worker is producing on average, and hence, how productive labor is as a whole. The marginal product of labor and total product of labor are also important measures, but they do not provide an overall indication of labor productivity growth. The wage and cost of capital are not necessarily linked to productivity growth and are not relevant measures for this issue.
Learning Objectives
- Become familiar with the importance and evaluation of labor's marginal product.