Question

In both Gamma and Delta average labor productivity is $20,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Sixty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.

Answer 1

Answer:

$2.4 B and $4.8 B respectively

Explanation:

In Gamma:

Population = 200,000

Working Population = 60% of 200,000 = 120,000

Labor productivity/worker = $20,000

Total Output = Labor productivity × Working pop.

= $20,000 × 120,000 = $2,400,000,000 = $2.4 B

In Delta:

Population = 400,000

Working Population = 60% of 400,000 = 240,000

Labor productivity/worker = $20,000

Total Output = Labor productivity × Working pop.

= $20,000 × 240,000 = $4,800,000,000 = $4.8 B