Output per unit of input employed is called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Productivity
The Glossary defines productivity as output per unit of input employed. When labour or capital works more efficiently, productivity rises. Human capital is valued because it raises labour productivity.
NCERT (2026-27): Indian Economic Development, Glossary: “Productivity – Output per unit of input employed. Increase in the efficiency on the part of capital or labour leads to increase in productivity. This term is generally used to refer to productivity increase in labour inputs.” “4.4 Human Capital and Human Development The two terms sound similar but there is a clear distinction between them. Human capital considers education and health as a means to increase labour productivity. …” |