Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be
A) $3 million.
B) $30 million.
C) $45 million.
D) $60 million.

Question

Quizplus · Accepted Answer

Total output or real GDP can be calculated by multiplying the number of workers by the hours worked per worker and then by the average real output per worker-hour. So, 1,500 workers * 2,000 hours/worker * $20/worker-hour = $60 million.

Assume That an Economy Has 1,500 Workers, Each Working 2,000