Productivity trends from output and employment data

Steps:

• Compute productivity as units of output divided by number of people employed for each year.
• Compare productivity values across the three years to identify any trend.
• Note changes in total units of output and employment levels.
• Determine if output per worker rises, indicating productivity growth.

Why B is correct:

• Productivity measures output per worker; if units per employee increase over years, productivity has risen, as per the economic definition of labor productivity.

Why the others are wrong:

• A: Inflation requires price data; value of output could rise from higher quantities, not just prices.
• C: Profit needs revenue minus costs; no cost information is provided.
• D: Data shows industry employment, not total working population.

Final answer: B