Final answer:
The measure of output relative to input is called productivity, which is essential for economic growth and can be measured as GDP per worker. Increases in productivity lead to more goods and services being produced in the same amount of time, optimizing resource allocation.
Step-by-step explanation:
The measure of output of goods and services relative to the input of labor, capital, and equipment is known as productivity. Productivity is calculated as the value of what is produced per worker or per hour worked. This can be measured in terms of GDP per worker or GDP per hour. Labor productivity is a crucial component of this concept, indicating the efficiency with which each worker contributes to the output. For instance, if a Canadian worker can produce 10 loaves of bread in an hour as opposed to a U.S. worker who produces only two loaves in the same timeframe, the Canadian worker is considered more productive.Higher productivity results in more output in the same amount of time, promoting economic growth and allowing for resources to be allocated to other areas of the economy. It is the primary determinant of an economy's long-term growth and higher wages.
Over time, even small increases in productivity growth rates can lead to significant improvements in GDP per capita.Productivity is the measure of the efficiency of the production of goods and services. It is the value of what is produced per worker or per hour worked. Productivity can be measured using GDP per worker or GDP per hour. For example, if a Canadian worker can make 10 loaves of bread in an hour while a U.S. worker can only make two, the Canadian worker is more productive.Sustained long-term economic growth comes from increases in worker productivity. Higher productivity means being able to do more in the same amount of time, which frees up resources for workers to use elsewhere. Labor productivity is the value that each employed person creates per unit of their input. The rate of productivity growth is a primary determinant of an economy's rate of long-term economic growth and higher wages.