Which of the following would likely indicate a high level of labor productivity?

Prepare for the Edexcel AS/A‑Level Business Theme 3 Exam. Engage with multiple choice questions and detailed explanations. Enhance your understanding and get exam ready with our comprehensive resources!

High output per worker is a clear indicator of a high level of labor productivity. Labor productivity is calculated by the total output produced relative to the number of workers or hours worked. When each worker is able to produce a significant amount of output, it signifies that the workforce is efficient, well-trained, and likely benefiting from effective processes and management strategies.

In contrast, options such as employee turnover, total output decreasing, and frequent absenteeism would all suggest potential issues with productivity. High employee turnover can disrupt operations and require time and resources for recruitment and training, potentially lowering overall productivity. A decrease in total output directly indicates declining productivity levels, as it signifies that either fewer goods are being produced or that resources are not being utilized effectively. Frequent absenteeism can lead to reduced workforce capacity and may strain remaining workers, further diminishing overall productivity. Therefore, high output per worker is the best and most direct measure of labor productivity among the provided choices.

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