Which of the following could be used to measure the efficiency of labour?
Answer Details
The input-output ratio could be used to measure the efficiency of labor. The input-output ratio is a measure of the amount of input required to produce a unit of output. In the case of labor efficiency, the input would be the amount of labor required to produce a unit of output.
By calculating the input-output ratio, we can determine how efficient a firm is in using its labor resources to produce output. A lower input-output ratio indicates that the firm is using its labor resources more efficiently, while a higher input-output ratio indicates that the firm is using its labor resources less efficiently.
In contrast, the rate of inflation, buying more machines, and unemployment rate are not measures of labor efficiency. The rate of inflation measures the rate at which prices are increasing in the economy, while buying more machines could increase productivity but doesn't necessarily measure labor efficiency. The unemployment rate measures the percentage of the labor force that is currently unemployed and seeking employment, which is not a direct measure of labor efficiency.
Therefore, the input-output ratio is the most appropriate measure for assessing the efficiency of labor.