In a particular country in 1998,the average worker needed to work 40 hours to produce 60 units of output.In that same country in 2008,the average worker needed to work 35 hours to produce 55 units of output.In that country,the productivity of the average worker
A) decreased between 1998 and 2008,so we would expect the standard of living to have decreased accordingly.
B) increased between 1998 and 2008,so we would expect the standard of living to have increased accordingly.
C) decreased between 1998 and 2008,so we would expect inflation to have decreased accordingly.
D) increased between 1998 and 2008,so we would expect inflation to have increased accordingly.

Question

Quizplus · Accepted Answer

Productivity is measured as the amount of output produced per unit of input. In this case, we are comparing the amount of output produced per hour of work. 
In 1998, the average worker produced 60/40=1.5 units of output per hour of work. 
In 2008, the average worker produced 55/35=1.57 units of output per hour of work. 
This shows an increase in productivity between 1998 and 2008. 
Therefore, we would expect the standard of living to have increased accordingly.

In a Particular Country in 1998,the Average Worker Needed to Work