Consider two countries country a has a population of 1000 of...

'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 day to make 270,000 final goods: Select one: a: None of the answers are correct b. Country B has lower productivity; but higher real GDP per person than country B C. Country A has lower productivity and lower real GDP per person than country B_ d. Country A has higher productivity and higher real GDP per person than country B_ e Country A has higher productivity; but lower real GDP per person than country B'

Transcript

00:01 So what is productivity? we're asked about productivity, but what the heck is productivity? productivity is a measure of efficiency of how much you get out of inputs, right? and this biggest input is time.

00:22 So if you put in an hour and get three things and i put in an hour of work and get two things, you're more productive than me because you're producing more in that hour of your time.

00:31 So for country a, we have to think about how much time country a is putting in, right? a, we have 800 workers, and they're working eight hours a day.

00:43 So eight hours a day per worker is equal to 6 ,400 hours per day.

00:54 Right.

00:55 So a's productivity would be 128 ,000 goods over 6 ,400 hours is equal to, well, that's 10, 20 goods per hour.

01:16 That's a measure of a's productivity.

01:19 And similarly, if we do the same thing for b, right, we have 1 ,800 work, 1 ,800.

01:25 800 workers times six hours a day, right? six hours per day per worker.

01:38 Again, see the units of workers are canceling, right? top and bottom.

01:42 And this is gonna be equal to 10 ,800 hours per day.

01:51 That's the definitely how the math works out.

01:58 So now b makes 270 ,000 goods.

02:02 So if we think about 270 ,000 goods over 10 ,800 hours, i bet this is going to divide cleanly, but i don't know what it is.

02:13 It looks like maybe 2 .75.