Suppose that the share of population employed in Country B is 50 percent, and that Countries B and C have the same real GDP per capita. Based on the information in the table, what share of Country C's population must be employed?
$\begin{array}{|c|r|r}
\hline \text { Country } & \text { Population (millions) } & \text { Average Labor Productivity (\$) } \
\hline \mathrm{A} & 100 & 2,000 \
\hline \mathrm{B} & 150 & 10,000\
\hline \mathrm{C} & 75 & 25,000 \
\hline \mathrm{D} & 250 & 50,000 \
\hline \mathrm{E} & 95 & 60,000 \
\hline
\end{array}$

Question

Suppose that the share of population employed in Country B is 50 percent, and that Countries B and C have the same real GDP per capita. Based on the information in the table, what share of Country C's population must be employed?  
$\begin{array}{|c|r|r}
\hline \text { Country } & \text { Population (millions) } & \text { Average Labor Productivity (\$) } \
\hline \mathrm{A} & 100 & 2,000 \
\hline \mathrm{B} & 150 & 10,000\
\hline \mathrm{C} & 75 & 25,000 \
\hline \mathrm{D} & 250 & 50,000 \
\hline \mathrm{E} & 95 & 60,000 \
\hline
\end{array}$

Quizplus · Accepted Answer

To find the share of Country C's population that must be employed, we first calculate the real GDP per capita for Country B, since we know both the share of the population employed and the average labor productivity. For Country B, 50% of the population is employed, which means 75 million people are working (50% of 150 million). With an average labor productivity of $10,000, the total GDP of Country B can be calculated as 75 million (employed) * $10,000 (productivity) = $750 billion. The GDP per capita for Country B is then $750 billion / 150 million = $5,000.Given that Countries B and C have the same real GDP per capita, Country C must also have a GDP per capita of $5,000. With an average labor productivity of $25,000 in Country C, we can calculate the share of the population that needs to be employed to achieve this GDP per capita. The total GDP needed for a per capita of $5,000 in a population of 75 million is 75 million * $5,000 = $375 billion. To achieve this GDP with a productivity of $25,000, the number of employed individuals must be $375 billion / $25,000 = 15 million. Therefore, the share of Country C's population that must be employed is 15 million / 75 million = 20%.

Suppose That the Share of Population Employed in Country B