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Last year the imaginary country of Basova had a population of 10,000, 6,000 people worked 8 hours a day, and produced a real GDP of $30,000,000. The imaginary country of Aldovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000. Which of the following is correct?a. Basova had higher productivity and higher real GDP per person.
b. Andovia had the higher productivity and higher real GDP per person.
c. Basova had the higher productivity while Andovia had the higher real GDP per person.
d. Andovia had the higher productivity while Basova had the higher real GDP per person.

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Answer:

C) Basova had the higher productivity while Andovia had the higher real GDP per person.

Explanation:

real GDP per capita: Aldovia's real GDP per capita is higher

  • Basova: $30,000,000 / 10,000 people =  $3,000 per capita
  • Aldovia: $38,000,000 / 12,000 people = $3,167 per capita

worker productivity: Basova's worker productivity is higher

  • Basova: $30,000,000 / 6,000 workers = $5,000 per worker
  • Aldovia: $38,000,000 / 8,000 workers = $4,750 per worker

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