Question on: JAMB Economics - 2018

In a developing economy, productivity is measured by the____________

A
output - labour ratio
B
capital - output ratio
C
output growth rate
D
Output per capital
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Correct Option: C

In a developing economy, productivity is often measured by the output-labor ratio. This indicates the efficiency with which labor is used in production.

  • A. output - labour ratio: This measures output per unit of labor, indicating how much is produced by each worker.
  • B. capital - output ratio: This ratio is important, but it focuses on capital's efficiency.
  • C. output growth rate: While output growth is related to productivity, it's not a direct measure of how efficiently resources are being used.
  • D. Output per capital: This is another important ratio but does not measure overall productivity.

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