The value of output was $100 billion in Northland and $200 billion in Southland. The population of Northland was 50 million and the population of Southland was 30 million. There were 30 million employed workers in Northland and 20 million employed workers in Southland.
A)Northland; the same in both countries
B)Northland; higher in Northland
C)Southland; the same in both countries
D)Southland; higher in Southland

Question

Quizplus · Accepted Answer

Average labor productivity, which is output per employed worker, was $3,333 ($100 billion/30 million)in Northland and 10,000 ($200 billion/20 million)in Southland. So average labor productivity was higher in Southland. The standard of living, as measured by output per person, was $2,000 ($100 billion/50 million)in Northland and 6,667 ($200 billion/30 million)in Southland. So the standard of living was also higher in Southland.

The Value of Output Was $100 Billion in Northland and $200