Question on: JAMB Economics - 2002

Improved labor efficiency means that the same amount of labor can produce more output. This is reflected in the output-input ratio. * **Output-input ratio:** This is a measure of efficiency, with output representing what is produced and input representing the resources used (in this case, labor). * **Increased output-input ratio:** An increase indicates that more output is being produced for the same amount of input (labor), demonstrating improved efficiency. * **Decreased output-input ratio:** Would mean that less output is produced relative to the same input (labor), thus is less efficient. * **Constant input-output ratio:** Implies no change in efficiency, which would mean the same output is achieved with the same input. * **Increased input-output ratio:** This would not be