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lora16 [44]
3 years ago
15

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a

population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.
Mathematics
1 answer:
kenny6666 [7]3 years ago
7 0

Answer:

Workland has lower productivity but higher real GDP per person than Laborland.

Step-by-step explanation:

Consider the provided information.

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.

Productivity = Output / Input

For Workland productivity is:

\frac{224,000}{7,000 \times 8}=\frac{224,000}{56,000}= 4

Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

For Laborland, productivity is:

\frac{105,000 }{3,000\times 7}=\frac{105,000 }{21,000 }= 5

Thus, Laborland has higher productivity .

To figure real GDP per person, divide output by population:

For Workland,

\frac{224,000}{10,000}= 22.4

for Laborland,

\frac{105,000 }{5,000 }= 21

Thus, Workland has a higher real GDP per person.

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