Which term is a relative measure of labor efficiency, either good or bad, when compared to an established base or norm?

Which term is a relative measure of labor efficiency, either good or bad, when compared to an established base or norm?

• A. Price
• B. Productivity
• C. Production
• D. Bid Documents

Answer: (B)

Productivity measures how much output is produced per unit of input, typically per labor hour, and is used as a relative gauge of efficiency when compared to a base or norm. If actual output per hour exceeds the established standard, efficiency is good; if it’s below, efficiency is poor. This relative comparison to a baseline is why productivity is the right term for describing labor efficiency. Price reflects cost or value, not how efficiently labor is used; production is about total output without tied efficiency comparison, and bid documents relate to procurement, not labor performance.

Productivity measures how much output is produced per unit of input, typically per labor hour, and is used as a relative gauge of efficiency when compared to a base or norm. If actual output per hour exceeds the established standard, efficiency is good; if it’s below, efficiency is poor. This relative comparison to a baseline is why productivity is the right term for describing labor efficiency. Price reflects cost or value, not how efficiently labor is used; production is about total output without tied efficiency comparison, and bid documents relate to procurement, not labor performance.