In year 1,an economy used 200 worker hours to produce 500 units of output.In year 2,the economy used 240 worker hours to produce 660 units of output.The rate of productivity growth from year 1 to year 2 is:

Question

Quizplus · Accepted Answer

Productivity in year 1 is 500 units/200 hours = 2.5 units/hour. In year 2, it is 660 units/240 hours = 2.75 units/hour. The growth rate is ((2.75 - 2.5) / 2.5) * 100% = 10%.

In Year 1,an Economy Used 200 Worker Hours to Produce