The value of output was $100 billion in Northland and $200 billion in Southland.The population of Northland was 50 million and the population of Southland was 30 million.There were 30 million employed workers in Northland and 20 million employed workers in Southland.Average labour productivity was higher in _________ and the standard of living was _______.

Question

Quizplus · Accepted Answer

Average labor productivity is higher in Southland ($200 billion/20 million = $10,000 per worker) compared to Northland ($100 billion/30 million = $3,333 per worker). The standard of living, measured by output per capita, is higher in Southland ($200 billion/30 million = $6,667 per person) compared to Northland ($100 billion/50 million = $2,000 per person).

The Value of Output Was $100 Billion in Northland and $200