Answer:
A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.
B.) GDP INCREASES.....
STANDARD OF LIVING ALSO INCREASES....
INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY
Explanation:
A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.
2.). - - - - - - - - - - - - - - - - - - - - - YEAR - - - - - -
------ - - - - - - - - - - - - - - - 2014 - - - - - - - 2015
Population - - - - - - - - - - 1000 - - - - - - - 1000
Employed workers - - - - 400 - - - - - - - - 440
Labor productivity - - - - 2000 - - - - - - - 1900
GDP = Labor productivity × employed pop.
2014 GDP = 2000 × 400 = 800,000
2015 GDP = 1900 × 440 = 836,000
GDP INCREASES.....
STANDARD OF LIVING ALSO INCREASES....
INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY
