Efficiency of labour implies

Step 1: Analyze the question The question asks what "efficiency of labour" means. This is a definition question from the Economics topic Factors of Production (Labour).

Step 2: Explain the concept Efficiency of labour is the ability of a worker to produce more output, of better quality, using the same or fewer resources (time, effort, cost). It is basically productivity combined with quality.

It is different from the things that influence efficiency. These include:

• Education and training (A)
• Good working conditions (B)
• Good health (C)
• Incentives and remuneration (E)

These are causes or determinants of efficiency, not the meaning of efficiency itself.

Step 3: Evaluate the options

• A. Education and training: a factor that improves efficiency, not its definition.
• B. Good working condition: a factor that raises efficiency, not its definition.
• C. Healthier workforce: a factor, not the definition.
• D. Increased productivity of workers accompanied by improvement in the quality of output: this describes what efficiency actually is, namely more output per worker and better quality.
• E. Incentives or remuneration: a motivator, not the definition.

Step 4: Answer The correct option is D.

Exam tip: In definition questions, ask yourself, "Is this option what the term is, or what causes it?" Options A, B, C and E are all inputs that lead to efficiency. Only D describes the result, which is the meaning of the term.