In Econland total output is $8 billion, population equals 500,000 people, and, of these, 400,000 are employed workers. Output per person in Econland equals ________ and average labor productivity equals ________.
A)$20,000; $16,000
B)$16,000; $20,000
C)$20,000; $20,000
D)$16,000; $16,000

Question

Quizplus · Accepted Answer

Output per person equals $16,000 ($18 billion/500,000), and average labor productivity, which is output per employed worker, equals $20,000 ($18 billion/400,000).

In Econland Total Output Is $8 Billion, Population Equals 500,000