Consider a small economy with real GDP of $1 billion and the number of workers employed equal to 2500. Which of the following is the best measure of labour productivity in this economy?
A)real GDP per employed worker = $400 000
B)real GDP per hour worked = $200
C)real GDP per employed worker = $200 000
D)real GDP per hour worked = $400
E)indeterminable from the information provided

Question

Quizplus · Accepted Answer

Real GDP per employed worker is the best measure of labour productivity in this economy. It is calculated by dividing real GDP by the number of workers employed. In this case, real GDP is $1 billion and the number of workers employed is 2500, so real GDP per employed worker is $1 billion / 2500 = $400,000.

Consider a Small Economy with Real GDP of $1 Billion