Question

Suppose that in Brazil total annual output is worth $600 million and people work 30 million hours. In Peru, total annual output is worth $800 million and people work 50 million hours. Productivity is higher

Answer 1

The productivity will be higher in Brazil.

Step-by-step explanation:

Below is the given values:

Total annual output = $600 million

Working hours = 30 million hours

Total annual output in Peru = $800

Working hours in Peru = 50 million hours

The productivity will be higher in Brazil because per hour productivity is 600/30 = 20 million. While in Peru the per hour productivity is 800/50 = 16 million

Moreover, the variation in the living standard in the country will be due to the differences in productivity.