Productivity in Economics Quiz

Productivity in Economics: ten practice questions on output per input and growth, with concepts and calculations. Every answer is explained.

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For High school students and adults reviewing the topic.

About 12 minutes. 10 questions.

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Choose one answer or enter a number in the stated unit and rounding, then check it.
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See your first-attempt score and an explanation for every answer.

Question 1A repair shop completes 280 comparable repairs using 800 labor-hours. Find labor productivity in repairs/h, rounded to two decimal places.

Enter a number in repairs/h.

Answers within 0.005 repairs/h of the expected value are accepted.

Question 2A shop completes 342 comparable repairs using 900 labor-hours. Find labor productivity in repairs/h, rounded to two decimal places.

Enter a number in repairs/h.

Answers within 0.005 repairs/h of the expected value are accepted.

Question 3Labor productivity rises from 0.35 to 0.38 repairs/h. Find the productivity growth rate in %, rounded to two decimal places.

Enter a number in %.

Answers within 0.005 % of the expected value are accepted.

Question 4During a shift, a line makes 660 parts in 120 labor-hours, but 36 parts fail inspection. Find productivity in acceptable parts/h, rounded to two decimal places.

Enter a number in acceptable parts/h.

Answers within 0.005 acceptable parts/h of the expected value are accepted.

Question 5A firm raises total output by adding workers and equipment in the same proportion. Each worker works the same hours and produces at the same rate as before. What increased?

Labor productivity increased along with the amount madeTotal production increased without a rise in the rate per labor-hourProfitability increased because more finished goods were producedTotal factor productivity increased because more labor was used

Question 6How does total factor productivity differ from labor productivity?

It divides output by the number of employees rather than their hoursIt measures the surplus of revenue over operating expensesIt compares output with combined labor and capital inputsIt attributes output growth from extra machinery to efficiency

Question 7A call center shortens calls by ending difficult conversations early. What measure would better test useful productivity?

Problems resolved per labor-hour, with checks on service qualityCalls completed per hour, counted when staff end the conversationTime spent on each greeting as a share of the total callMessages sent per shift, adjusted for the number of staff

Question 8After installing software, a firm handles simpler orders and reports higher productivity. What causal limit matters?

The change’s timing isolates the effect of the new softwareChanging output mix prevents a meaningful comparison of working hoursThe simpler orders explain the improvement without needing a software effectThe change in order difficulty is another explanation to examine

Question 9When can automation fail to improve useful productivity?

Using machines changes the process from productive work to capital spendingA stable output total indicates that automation produced no gainReplacing a manual step is sufficient evidence of higher efficiencyExtra errors and supervision outweigh the labor saved

Question 10Management rewards only the number of packages dispatched. Incorrect orders rise. What does this illustrate?

The higher dispatch count indicates better service to customersThe target rewards dispatch volume without accounting for correct fulfillmentThe incentive will improve accuracy as staff learn to dispatch fasterCounting dispatches is enough if later corrections are recorded separately

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