To compare the productivity and real GDP per person of Country A and Country B, we first need to calculate the productivity and real GDP per person for both countries.
Country A:
- Population: 1,000
- Number of workers: 800
- Hours worked per day by each worker: 8
- Final goods produced: 128,000
Total hours worked per day in Country A = Number of workers × Hours worked per day = 800 × 8 = 6,400 hours
Productivity in Country A: \[ \text{Productivity} = \frac{\text{Final goods produced}}{\text{Total hours worked}} = \frac{128,000}{6,400} = 20 \text{ goods per hour} \]
Real GDP per person in Country A: \[ \text{Real GDP} = 128,000 \] \[ \text{Real GDP per person} = \frac{\text{Real GDP}}{\text{Total population}} = \frac{128,000}{1,000} = 128 \text{ GDP per person} \]
Country B:
- Population: 2,000
- Number of workers: 1,800
- Hours worked per day by each worker: 6
- Final goods produced: 270,000
Total hours worked per day in Country B = Number of workers × Hours worked per day = 1,800 × 6 = 10,800 hours
Productivity in Country B: \[ \text{Productivity} = \frac{\text{Final goods produced}}{\text{Total hours worked}} = \frac{270,000}{10,800} \approx 25 \text{ goods per hour} \]
Real GDP per person in Country B: \[ \text{Real GDP} = 270,000 \] \[ \text{Real GDP per person} = \frac{\text{Real GDP}}{\text{Total population}} = \frac{270,000}{2,000} = 135 \text{ GDP per person} \]
Now we can summarize the findings:
-
Productivity:
- Country A: 20 goods/hour
- Country B: 25 goods/hour
- Conclusion: Country A has lower productivity.
-
Real GDP per person:
- Country A: 128 GDP/person
- Country B: 135 GDP/person
- Conclusion: Country A has lower real GDP per person.
Based on this analysis, the correct answer is: b. Country A has lower productivity and lower real GDP per person than country B.
2 answers