Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

a. A had the higher level of real GDP and Country B had the higher level of real GDP per person

b. B had the higher level of real GDP and Country A had the higher level of real GDP per person

c. A had the higher level of real GDP and real GDP per person.

d. B had the higher level of real GDP and real GDP per person

The answer is d. B had higher real GDP and real GDP per capita.

Explanation:

Total real GDP of country A (in one working day) : Number of working persons x average working hour per day x productivity = 600 x 8 x 2.5 = 12,000;

Total real GDP of country B (in one working day) : Number of working persons x average working hour per day x productivity = 560 x 8 x 3 = 13,440;

GDP per capita of country A (in one working day) : Total real GDP of A (in one working day) / total population of A = 12,000 / 1,000 = 12;

GDP per capita of country B (in one working day) : Total real GDP of B (in one working day) / total population of B = 13,440 / 800 = 16.8.

Thus, country B had higher level of real GDP and real GDP per person in comparison to country A.