What economic measure indicates how efficiently resources are being used in production?

Productivity is the correct measure that indicates how efficiently resources are being used in production. It is defined as the output produced per unit of input over a specific time period, typically measured in terms of labor, capital, or land. Higher productivity means that more goods and services are being produced with the same amount of resources, reflecting efficient use of inputs in the production process.

Improvements in productivity can result from various factors, such as advanced technology, better training for workers, or streamlined processes. This measure is crucial for economic growth, as economies that increase their productivity can produce more goods and services, leading to increased standards of living and overall economic welfare.

In contrast, standard of living focuses on the overall quality of life and economic well-being of individuals, but does not specifically measure resource efficiency. Market power relates to a firm's ability to influence prices and is more about market control than efficiency in resource use. Contest does not have a relevant application in this economic context. Hence, productivity stands out as the appropriate measure for assessing how effectively resources are utilized in production.