If the average worker's productivity is $20 of output per hour and the labor force is employed for 500 billion hours,GDP is equal to
A)$25 billion.
B)$250 billion.
C)$10 trillion.

Question

Quizplus · Accepted Answer

GDP is calculated by multiplying the total amount of goods and services produced in a country by their prices. In this case, the total amount produced would be the productivity per hour (which we'll assume is the same as the price per hour) multiplied by the total number of hours worked. 
So, GDP = productivity per hour x total hours worked 
GDP = $20/hour x 500 billion hours 
GDP = $10 trillion 
Therefore, the answer is C, $10 trillion.

If the Average Worker's Productivity Is $20 of Output Per