Question

Which of the following represents an increase in labor productivity?(1 point)
Responses

GDP increased from $200 billion to $400 billion, while total labor hours increased from 50 million to 100 million
GDP increased from $200 billion to $400 billion, while total labor hours increased from 50 million to 100 million

GDP decreased from $400 billion to $200 billion while total labor hours decreased from 75 million to 50 million
GDP decreased from $400 billion to $200 billion while total labor hours decreased from 75 million to 50 million

GDP decreased from $400 billion to $200 billion while total labor hours decreased from 100 million to 50 million
GDP decreased from $400 billion to $200 billion while total labor hours decreased from 100 million to 50 million

GDP increased from $200 billion to $400 billion, while total labor hours increased from 50 million to 75 million

Answer 1

To determine which scenario represents an increase in labor productivity, we can calculate labor productivity as GDP divided by total labor hours.

1. **First scenario:**
- GDP: $200 billion to $400 billion (final GDP = $400 billion)
- Labor hours: 50 million to 100 million (final labor hours = 100 million)
- Labor productivity = GDP / Labor hours = $400 billion / 100 million hours = $4,000 per hour

2. **Second scenario:**
- GDP: $400 billion to $200 billion (final GDP = $200 billion)
- Labor hours: 75 million to 50 million (final labor hours = 50 million)
- Labor productivity = $200 billion / 50 million hours = $4,000 per hour

3. **Third scenario:**
- GDP: $400 billion to $200 billion (final GDP = $200 billion)
- Labor hours: 100 million to 50 million (final labor hours = 50 million)
- Labor productivity = $200 billion / 50 million hours = $4,000 per hour

4. **Fourth scenario:**
- GDP: $200 billion to $400 billion (final GDP = $400 billion)
- Labor hours: 50 million to 75 million (final labor hours = 75 million)
- Labor productivity = $400 billion / 75 million hours = $5,333.33 per hour

Now, we can compare the final labor productivity of each scenario:

- Scenario 1: $4,000
- Scenario 2: $4,000
- Scenario 3: $4,000
- Scenario 4: $5,333.33

Among these, the fourth scenario has a higher labor productivity than the others, indicating an increase in labor productivity.

Thus, the correct answer is:
**GDP increased from $200 billion to $400 billion, while total labor hours increased from 50 million to 75 million.**