Which sector is generally considered to use labor most efficiently, measured by output per worker?

• A. Retail
• B. Construction
• C. Manufacturing
• D. Agriculture

Answer: (C)

Verified step by step guidance

1. Understand the concept of labor efficiency, which is typically measured by output per worker. This means how much output (goods or services) each worker produces on average in a given sector.
2. Consider the characteristics of each sector: Retail often involves many low-skill, service-oriented jobs; Construction involves physical labor and project-based work; Agriculture depends on seasonal cycles and can be labor-intensive; Manufacturing usually involves production processes with machinery and assembly lines that increase output per worker.
3. Recall that manufacturing sectors often use capital equipment and technology to enhance worker productivity, leading to higher output per worker compared to sectors that rely more heavily on manual labor or services.
4. Compare the typical output per worker across sectors, noting that manufacturing tends to have higher labor productivity due to mechanization, standardized processes, and economies of scale.
5. Conclude that manufacturing is generally considered the sector that uses labor most efficiently, measured by output per worker, because it combines labor with capital to maximize production.