No, instead of power you should read load, that is the actual weight that the pulley is lifting. The way that the term power is used in this problem is very misleading (and confusing especially in a Physics course as you have discovered) and I suspect that the author ment to use the term load. It would have been closer to the truth if the term "lifting or output power" was used. The reason why I suspect that this was his intention is that if one neglect energy losses the work input should be equal to the work output by the system:
[tex]f_i\ s_i = f_o\ s_o[/tex]
This means that if the "output power" (load / output force) is four times the "input power" (input force) then the load can be lifted through only a quarter of the distance (speed) that the input force moves.