Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.

Question

BlackTom AI · Accepted Answer

Productivity defined as output per hour worked: A = 128,000 ÷ (800 workers × 8 hours) = 128,000 ÷ 6,400 = 20 goods per hour. B = 270,000 ÷ (1,800 workers × 6 hours) = 270,000 ÷ 10,800 = 25 goods per hour. Thus Country A has lower productivity than Country B.

Relevant concepts
- Productivity (standard macro definition used here) is output per hour worked — it measures how much each hour of labor produces.
- Real GDP per person (per capita output) is total real output divided by population — a broad indicator of average living standards.

Step-by-step calculations
1) Total labor hours:
   - Country A: 800 workers × 8 hours/day = 6,400 hours.
   - Country B: 1,800 workers × 6 hours/day = 10,800 hours.
2) Productivity (output per hour):
   - A: 128,000 goods ÷ 6,400 hours = 20 goods/hour.
   - B: 270,000 goods ÷ 10,800 hours = 25 goods/hour.
3) Real GDP per person:
   - A: 128,000 ÷ 1,000 people = 128 goods per person.
   - B: 270,000 ÷ 2,000 people = 135 goods per person.

Why the correct answer is correct
Country B produces more output per hour (25 > 20), so B is more productive. Country B also has higher real GDP per person (135 > 128), so B has the higher per-capita output. Therefore Country A has lower productivity and lower real GDP per person than Country B.

Why other interpretations are incorrect
- If someone measured “productivity” as output per worker (not per hour), they’d find A: 128,000 ÷ 800 = 160 goods/worker and B: 270,000 ÷ 1,800 = 150 goods/worker, so A > B. That measure ignores differing hours and is not the standard hourly productivity concept used here. Any choice claiming A has higher productivity per hour or higher GDP per person is contradicted by the calculations above.

Conclusion
The computed results confirm the provided answer: Country A has lower productivity and lower real GDP per person than country B.

Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.Single choice

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