If Real GDP Per Person in a Country Equals $20,000

question 28

Multiple Choice

If real GDP per person in a country equals $20,000 and 40 percent of the population is employed, then average labor productivity equals:

• A)$8,000.
• B)$20,000.
• C)$40,000.
• D)$50,000.

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Definitions:

Direct Labor Costs

The wages paid to workers directly involved in the manufacturing of products or the provision of services.

Cash Account

A financial account that records the amounts of cash available for transactions or held as reserves.

Variable Manufacturing Overhead

Indirect production costs that vary with the level of production output, such as utilities or raw materials.

Work In Process

A stage in the manufacturing process where items are partially completed but not yet ready to be sold.