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Suppose That in Peru Total Annual Output Is Worth $750

Question 216

Multiple Choice

Suppose that in Peru total annual output is worth $750 million and people work 40 million hours. In Oman, total annual output is worth 650 million and people work 20 million hours. Productivity is higher


A) in Oman.Most variation in the standard of living across countries is due to differences in productivity.
B) in Oman.Differences in productivity explain very little of the variation in the standard of living across countries.
C) in Peru.Most variation in the standard of living across countries is due to differences in productivity.
D) in Peru.Differences in productivity explain very little of the variation in the standard of living across countries.

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