Question

If total output in an economy is $600,000 and the total work-hours in the economy are 40,000, labor productivity is:

Answer 1

$15 per hour

Step-by-step explanation:

Labor productivity is defined as the number of goods and services produced by workers in an organization at a given point in time.

The formular for labor productivity is

= Output ÷ total work hour

= $600,000 ÷ 40,000

= $15

Therefore, labor productivity is $15 per hour