Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods: a. Workland has higher productivity and higher real GDP per person than Laborland.
b. Workland has higher productivity but lower real GDP per person than Laborland.
c. Workland has lower productivity but higher real GDP per person than Laborland.

c. Workland has lower productivity but higher real GDP per person than Laborland.

Explanation:

a) Data and Calculations:

                              Workland        Laborland

Population                10,000            5,000

Working population  7,000             3,000

Labor force %            70%                 60%

Labor input             56,000 hrs    21,000 hrs

Workland output  224,000        105,000

Productivity = 224,000/56,000    105,000/21,000

=                               4                       5

Output per person  22.4                21

 = 224,000/10,000        and     105,000/5,000

b) The productivity of Workland and Laborland expressed as the ratio of output volume to the labor input shows that  for Workland, for every hour of labor input, there is 4 output, and for Laborland, for every hour of labor input, there is 5 output.  Laborland, therefore, has higher productivity than Workland.  However, Workland enjoys higher real GDP per person than Laborland because whereas, Workland produces output of 22.4 per person, Laborland only produces 21 per person.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.