The value of output was $1,000 billion in Northland and $2,000 billion in Southland. The population of Northland was 50 million and the population of Southland was 120 million. There were 30 million employed workers in Northland and 75 million employed workers in Southland. Average labor productivity was higher in ________ and the standard of living was ________.

Question

Quizplus · Accepted Answer

Average labor productivity, which is output per employed worker, was $33,333 ($1,000 billion/30 million)in Northland and 26,667 ($2,000 billion/75 million)in Southland. So average labor productivity was higher in Northland. The standard of living, as measured by output per person, was $20,000 ($1,000 billion/50 million)in Northland and 16,667 ($2,000 billion/120 million)in Southland. So the standard of living was also higher in Northland.

The Value of Output Was $1,000 Billion in Northland and $2,000