Consider a Small Economy with Real GDP of $1 Billion

question 31

Multiple Choice

Consider a small economy with real GDP of $1 billion and the total number of hours worked equal to 5 million.Which of the following is the best measure of labour productivity in this economy?

• A)real GDP per hour worked = $20
• B)real GDP per employed worker = $20
• C)real GDP per hour worked = $200
• D)real GDP per employed worker = $200
• E)Not able to determine from the information provided

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Definitions:

Labour Cost

The total expenditure incurred by employers to compensate the workforce, including wages, benefits, and any other employee-related expenses.

Per Unit

A term used to define the cost, price, or quantity relative to a single unit of a product or service.

Political Risk

The likelihood of financial loss or other adverse effects on investment outcomes due to political instability, government actions, or geopolitical tensions in a region.

Cultural Issues

Differences in beliefs, values, practices, and behaviors among people from different backgrounds, which can impact interactions and create challenges in various contexts.