In a particular country in 1998,the average worker needed to work 40 hours to produce 100 units of output.In that same country in 2008,the average worker needed to work 36 hours to produce 72 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 output per hour worked. In 1998, productivity was 100 units/40 hours = 2.5 units per hour. In 2008, productivity was 72 units/36 hours = 2 units per hour. Since productivity decreased, the standard of living would likely decrease as well.

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