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Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500. A. Upland has higher productivity and higher real GDP per person than Lowland. B. Upland has higher productivity but lower real GDP per person than Lowland. C. Upland has lower productivity but higher real GDP per person than Lowland. D. Upland has lower productivity and lower real GDP per person than Lowland.

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Answer:

A.- Upland has higher productivity and higher real GDP per person than Lowland

Explanation:

GDP per person: GDP / population

Productivity: GDP / hours worked

GDP per person Upland  342,000 / 15,000    = 22,8

Hours worked Upland = 9,000* 8 = 72,000

Productivity Upland  = 342,000 / 72,000 = 4.75

GDP per person Lowland 171,500 / 8,000    = 21.4375

Hours worked Lowland  7,000* 7 = 49,000

Productivity Lowland = 171,500 / 49,000 = 3.5

Comparison

22.8 > 21.4375  &  4.75 > 3.5

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