Suppose that in Ireland total annual output is worth $600 million and people work 30 million hours.In Canada total annual output is worth $800 million and people work 50 million hours.Productivity is higher
A) in Ireland. Most variation in the standard of living across countries is due to differences in productivity.
B) in Ireland. Differences in productivity explain very little of the variation in the standard of living across countries.
C) in Canada. Most variation in the standard of living across countries is due to differences in productivity.
D) in Canada. Differences in productivity explain very little of the variation in the standard of living across countries.

Question

Quizplus · Accepted Answer

Productivity is output per hour worked. In this case, Ireland has a higher productivity as they produce $20 worth of output per hour worked while Canada produces $16 worth of output per hour worked. Since productivity is a major factor in determining the standard of living, it can be concluded that most of the variation in standard of living across countries is due to differences in productivity.

Suppose That in Ireland Total Annual Output Is Worth $600