Question

The number of effective workers takes into account the number of workers and the:

a) amount of capital available to each worker

b) rate of growth of the number of workers

c) efficiency of each worker

d) saving rate of each worker

Answer 1

Effective number of workers is calculated as follows -

Effective number of workers = Number of actual workers (L) * Efficiency of each worker (E)

So,

Effective number of workers = L * E

Thus,

The number of effective workers takes into account the number of workers and the efficiency of each worker.

Hence, the correct answer is the option (c).