Question

Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be:
$45 million.
$60 million.
$30 million.
$3 million.

Answer 1

Answer: $60 million

Explanation: Total output is defined as the total value of all goods produced or services rendered by an individual, group or country. It is the total value which could be amassed from one's input.

Therefore,

An economy with;

Number of workers =2000

Work time of each worker = 1500 hours

Payment rate per hour = $20

Total output = (Number of workers * work time * payment rate per hour)

Total output = 2000 * 1500 * 20

Total output = $60,000,000

Therefore, total output or real gross domestic product of the country is

$60,000,000