Which concept measures the level of output per worker and is used as a measure of productivity?

Prepare for the IB Business and Management SL Exam with flashcards and multiple-choice questions. Each question includes hints and explanations to boost your confidence and success.

Multiple Choice

Which concept measures the level of output per worker and is used as a measure of productivity?

Explanation:
Productivity measures how much output a worker produces in a given period and is used as a standard way to gauge efficiency. In its simplest form, labor productivity = total output divided by the number of workers (or by hours worked). This directly captures output per worker, which is exactly what the question asks for. Motivation is about the drive to work; the Hawthorne effect describes performance changes from being observed; the time rate refers to how wages are paid per unit of time. These do not measure output per worker, which is why productivity is the best choice.

Productivity measures how much output a worker produces in a given period and is used as a standard way to gauge efficiency. In its simplest form, labor productivity = total output divided by the number of workers (or by hours worked). This directly captures output per worker, which is exactly what the question asks for.

Motivation is about the drive to work; the Hawthorne effect describes performance changes from being observed; the time rate refers to how wages are paid per unit of time. These do not measure output per worker, which is why productivity is the best choice.

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