Which term refers to output produced per unit of labor input, such as GDP per hour worked?

Which term refers to output produced per unit of labor input, such as GDP per hour worked?

• A. Labor Productivity
• B. GNI
• C. HDI
• D. Happiness Index

Answer: (A)

Labor productivity is the amount of output produced for each unit of labor input, usually expressed as GDP per hour worked. This measure shows how efficiently workers turn time into goods and services. When GDP rises while hours worked stay the same or fall, productivity has increased, meaning more value is created per hour. Conversely, if total output grows mainly because more hours are invested, productivity per hour might not improve and can even drop. GDP per hour worked specifically isolates how productive the labor force is, rather than just how much total output or total income a country generates. Other terms capture different ideas: gross national income focuses on total income, not how efficiently that income is produced per hour; the human development index blends education, health, and income but isn’t a per-hour output measure; and a happiness or well-being index looks at subjective well-being rather than production efficiency.

Labor productivity is the amount of output produced for each unit of labor input, usually expressed as GDP per hour worked. This measure shows how efficiently workers turn time into goods and services. When GDP rises while hours worked stay the same or fall, productivity has increased, meaning more value is created per hour. Conversely, if total output grows mainly because more hours are invested, productivity per hour might not improve and can even drop.

GDP per hour worked specifically isolates how productive the labor force is, rather than just how much total output or total income a country generates. Other terms capture different ideas: gross national income focuses on total income, not how efficiently that income is produced per hour; the human development index blends education, health, and income but isn’t a per-hour output measure; and a happiness or well-being index looks at subjective well-being rather than production efficiency.