Which of the following represents an increase in labor productivity within a country?
a
GDP decreased from 400 billion dollars to 200 billion dollars while total labor hours decreased from 75 million year to 50 million.
b
GDP increased from 200 billion dollars to 400 billion dollars, while total labor hours increased from 50 million to 75 million.
c
GDP increased from 200 billion dollars to 400 billion while total labor hours increased from 50 million to 100 million.
d
GDP decreased from 400 billion dollars to 200 billion dollars, while total labor hours decreased from 100 million to 50 million.
b - GDP increasing while total labor hours also increase indicates an increase in labor productivity.
The correct answer is option c: GDP increased from 200 billion dollars to 400 billion while total labor hours increased from 50 million to 100 million.
In this scenario, both GDP (gross domestic product) and total labor hours have increased, indicating an increase in labor productivity within the country. Labor productivity measures the amount of output produced per unit of labor input, so an increase in GDP while total labor hours also increase suggests that workers are producing more output per hour of work.