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Real GDP Per Person Equals Average Labor Productivity

question 71

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Real GDP per person equals average labor productivity:


Definitions:

Marginal Product

The additional output that is produced by employing one more unit of a particular resource.

Average Product

The output produced per unit of input, calculated by dividing total production by the total number of inputs.

Marginal Product

The additional output that results from the use of one more unit of a production input, holding all other inputs constant.

Nonlabor Resources

Inputs used in the production of goods and services that do not involve human labor, such as capital, land, and natural resources.

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