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 labour productivity was higher in _________ and the standard of living was _______.

Question

Quizplus · Accepted Answer

The average labor productivity of Northland is higher because it produced $1,000 billion with only 30 million employed workers, while Southland produced $2,000 billion with 75 million employed workers. This means that Northland's workers were more productive, which would result in a higher standard of living in Northland compared to Southland. Therefore, the correct choice is B.

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