Consider a Small Economy with 2500 Employed Workers Who Worked

question 67

Multiple Choice

Consider a small economy with 2500 employed workers who worked a total of 5 million hours at an average wage of $40 per hour.Which of the following is the best measure of labour productivity in this economy?

• A)real GDP per hour worked = $40
• B)real GDP per employed worker = $80 000
• C)real GDP per hour worked = $80
• D)real GDP per employed worker = $125 000
• E)Not able to determine from the information provided

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Definitions:

Conservative Position

A political or economic stance that emphasizes the importance of tradition, stability, and minimal intervention by government in the free market.

Money Income

The total income received by an individual or household in the form of wages, salaries, investments, and other sources before any taxes or deductions are applied.

Median Income

The middle value of income in a given population, such that half earn more and half earn less.

Poverty Rate

The poverty rate is a statistical measure that estimates the percentage of the population living below the poverty line, based on income or consumption levels.