Suppose that in Brazil total annual output is worth $600 million and people work 30 million hours.In Peru total annual output is worth $800 million and people work 50 million hours.Productivity is higher
A)in Brazil.Most variation in the standard of living across countries is due to differences in productivity.
B)in Brazil.Differences in productivity explain very little of the variation in the standard of living across countries.
C)in Peru.Most variation in the standard of living across countries is due to differences in productivity.
D)in Peru.Differences in productivity explain very little of the variation in the standard of living across countries.

Question

Quizplus · Accepted Answer

Productivity is higher in Brazil because their total annual output is worth $600 million while people work only 30 million hours. In contrast, Peru's total annual output is worth $800 million, but people work 50 million hours. This means that Brazil is more productive per hour worked than Peru. The statement "Most variation in the standard of living across countries is due to differences in productivity" is also true, as productivity is a major determinant of a country's economic growth and can significantly affect the standard of living of its citizens.

Suppose That in Brazil Total Annual Output Is Worth $600