Which of the following is not a measure of labour productivity?
A Units of output per labour hour
B Value-added per labour hour
C Units of output per shift
D Units of output per machine hour
E Dollar value of output per labour hour
The correct answer and explanation is:
The correct answer is D) Units of output per machine hour.
Labour productivity measures the efficiency of labour in producing goods or services. It is a way of assessing how effectively workers are using their time to generate output. Let’s go through each option to clarify why units of output per machine hour is not a measure of labour productivity:
- A) Units of output per labour hour: This is a direct measure of labour productivity. It tells us how much output (usually goods or services) is produced for every hour worked. This measure reflects the efficiency of workers in transforming inputs (labour) into output.
- B) Value-added per labour hour: Value-added refers to the difference between the value of goods and services produced and the costs of raw materials and intermediate goods. Measuring value-added per labour hour assesses how much value a worker creates per hour of work, which is another useful indicator of labour productivity.
- C) Units of output per shift: This measure also reflects labour productivity, but in terms of a longer period (the entire shift). It looks at how many units of output are produced within a given shift, helping to understand how much output workers generate during a defined period.
- D) Units of output per machine hour: This is a measure of machine productivity, not labour productivity. It focuses on how much output is produced for every hour a machine operates, which is relevant for understanding the efficiency of machinery but not directly related to the productivity of human labour.
- E) Dollar value of output per labour hour: This measure takes into account not just the number of units produced but also the value of those units. It assesses how much dollar value is generated by each hour of labour, providing a financial perspective on labour productivity.
In summary, units of output per machine hour is not a measure of labour productivity because it focuses on machinery efficiency rather than human labour efficiency.