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JAMB Economics 2018 Paper

Question : 15

Total: 85

In a developing economy, productivity is measured by the____________

Solution:

Concept:

Productivity is the amount of output produced per unit of input used.

Explanation:

In a developing economy, labour is the most commonly used input, so productivity is usually measured as output per unit of labour.

This is expressed as:

\text{Productivity} = \frac{\text{Total output}}{\text{Quantity of labour}}

This is the output-labour ratio.

Capital-output ratio measures capital efficiency, not productivity level.

Output growth rate is a change over time, not a measure of productivity.

Answer:

A. output - labour ratio

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