Q is total real output (Real GDP)

K is capital in use

L is labor employed

Suppose a country's total output for 2010 was $5 trillion. All members of its labor force worked a total of 100 billion productive hours for the year. What is the labor productivity for this country? Q/L

(Remember that Labor Productivity relates output to the labor hours used in the production of that output. It is measured as real GDP divided by the hours of labor employed to produce that output.)

$5 trillion / 100 billion hours = $50/ hour

The country's labor productivity for 2010 was $50/hour.

1. The TransformNow Moving Company has 10 workers and 5 trucks and they can move 20 tons of furniture per day. The labor productivity is: (Labor Productivity is Q/L. 20/10=?)
   1. 1 ton of furniture per worker per day
   2. 2 tons of furniture per worker per day
   3. 4 tons of furniture per worker per day
   4. 10 tons of furniture per worker per day
   5. 20 tons of furniture per worker per day

1. The TransformNow Moving Company has 10 workers and 5 trucks and they can move 20 tons of furniture per day. The capital productivity is: (Capital (K) productivity is L/K. 10/5=?)
   1. 2 tons of furniture per worker per day
   2. 4 tons of furniture per worker per day
   3. 5 tons of furniture per worker per day
   4. 15 tons of furniture per worker per day
   5. 20 tons of furniture per worker per day