EPF Unit 2 Lesson 8

labor productivity

DEFINITION of 'Labor Productivity' A measurement of economic growth of a country. Labor productivity measures the amount of goods and services produced by one hour of labor. More specifically, labor productivity measures the amount of real GDP produced by an hour of labor.

costs of production

DEFINITION of 'Production Cost' A cost incurred by a business when manufacturing a good or producing a service. Production costs combine raw material and labor. To figure out the cost of production per unit, the cost of production is divided by the number of units produced

monetary measures of productivity

DEFINITION of 'Productivity' An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in revenues and other GDP components such as business inventories.

productivity

the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.