Consider Two Countries

question 174

Multiple Choice

Consider two countries.Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

• A) Country A has higher productivity and higher real GDP per person than country B.
• B) Country A has lower productivity and lower real GDP per person than country B.
• C) Country A has higher productivity,but lower real GDP per person than country B.
• D) Country B has lower productivity,but higher real GDP per person than country B.

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Definitions:

Appliances

Electrical or mechanical machines that perform domestic functions, such as refrigerators or washing machines.

Net Proceeds

The final amount of money received from a transaction after deducting all associated costs and expenses.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the sales or services sold.

Consignment

The process of providing goods to a third-party retailer who pays the supplier only for the merchandise sold, not for unsold inventory.