If real GDP per person in a country equals $20,000 and 40 percent of the population is employed, then average labor productivity equals:

Question

Quizplus · Accepted Answer

If real GDP per person is obtained by multiplying the average output each worker produces times the percentage of population employed. Then average output per worker or average labor productivity is = real GDP divided by the percentage of population employed =: $20,000/0.40 = $50,000.

If Real GDP Per Person in a Country Equals $20,000