ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Labor productivity, also known as workforce productivity, is defined as real economic output per labor hour. Growth in labor productivity is measured by the change in economic output per labor hour over a defined period.

Detailed explanation-2: -Labour productivity is defined as output per worker or per hour worked. Factors that can affect labour productivity include workers’ skills, technological change, management practices and changes in other inputs (such as capital). Multifactor productivity (MFP) is defined as output per unit of combined inputs.

Detailed explanation-3: -The labor productivity ratio is calculated by dividing output by input. For example, if a company produces 100 widgets in one hour and there are 10 workers working that hour, the labor productivity ratio would be 10010, or 10 widgets per worker.

Detailed explanation-4: -Productivity is a measure of economic performance that compares the amount of goods and services produced (output) with the amount of inputs used to produce those goods and services.

Detailed explanation-5: -The main determinants of labor productivity are physical capital, human capital, and technological change. These can also be viewed as key components of economic growth.