Answer:
a) Productivity of country A = 20 goods per hour
Productivity of country B = 25 goods per hour
Real GDP per person for country A = 128 goods per person
Real GDP per person for country B = 135 goods per person
b) Country B is better off
Explanation:
Data provided in the question:
For country A
Population = 1,000
Number of workers = 800
Number of working hour per day = 8
Final goods = 128,000
For country B
Population = 2,000
Number of workers = 1,800
Number of working hour per day = 6
Final goods = 270,000
Now,
(a) The Productivity is given as
= [ Total Output ÷ Total Productive Hours ]
Thus,
Productivity of country A
= [ 128,000] ÷ [ 800 × 8 ]
= 20 goods per hour
Productivity of country B
= [ 270,000 ] ÷ [ 1800 × 6 ]
= 25 goods per hour
and,
Real GDP per person = [ Final goods ] ÷ [ Population ]
Real GDP per person for country A
= 128000 ÷ 1000
= 128 goods per person
Real GDP per person for country B
= [ 270000 ] ÷ 2000
= 135 goods per person
(b) Since,
The Real GDP per person for country B is greater than the Real GDP per person for country A
Therefore,
Country B is better off
