In both Gamma and Delta average labor productivity is $40,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Fifty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.
A)$2.4 billion; $4.8 billion
B)$4 billion; $8 billion
C)$100,000; $200,000
D)$8 billion; $16 billion

Question

Quizplus · Accepted Answer

The number of workers in Gamma is 100,000 (50% of 200,000)and 200,000 (50% of 400,000)in Delta. Total output, which is the average labor productivity per worker times the number of workers, is $4 billion (100,000 × $40,000)in Gamma and $8 billion (200,000 × $40,000)in Delta.

In Both Gamma and Delta Average Labor Productivity Is $40,000