Answer:
c. Workland has lower productivity but higher real GDP per person than Laborland.
Explanation:
a) Data and Calculations:
Workland Laborland
Population 10,000 5,000
Working population 7,000 3,000
Labor force % 70% 60%
Labor input 56,000 hrs 21,000 hrs
Workland output 224,000 105,000
Productivity = 224,000/56,000 105,000/21,000
= 4 5
Output per person 22.4 21
= 224,000/10,000 and 105,000/5,000
b) The productivity of Workland and Laborland expressed as the ratio of output volume to the labor input shows that for Workland, for every hour of labor input, there is 4 output, and for Laborland, for every hour of labor input, there is 5 output. Laborland, therefore, has higher productivity than Workland. However, Workland enjoys higher real GDP per person than Laborland because whereas, Workland produces output of 22.4 per person, Laborland only produces 21 per person.
