Which term is a measure of the efficiency with which goods and services are produced, often stated as output per hour per worker?

• A. Capital
• B. Labor
• C. Economic Equity
• D. Productivity

Answer: (D)

Productivity is the measure of how efficiently resources are turned into goods and services. When we express it as output per hour per worker, we’re looking at how much each worker produces in a given time, which directly captures production efficiency. If output increases while the number of hours or workers stays the same, productivity has improved; if it stays the same or falls, efficiency hasn’t increased. Factors that boost productivity include better technology, training, and more efficient processes.

Capital and labor are inputs used to produce output, not measures of efficiency themselves. Economic equity is about fairness in the distribution of income and resources, not how efficiently production occurs.