Productivity Question 3 options: is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. explains very little of the differences in the standard of living across countries. explains some, but not most of the differences in the standard of living across countries. explains most of the differences in the standard of living across countries.

explains most of the differences in the standard of living across countries.

Explanation:

Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.

Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).

Productivity is a measure of how efficient is the manufacturing of finished goods and services in a country. Thus, it's a measure of total output with respect to input such as capital, labour, and other resources.

Generally, productivity is a ratio of output (product) to the resources (input) that is required to produce the product and as such determines the economic output of a particular country, as well as the standard of living of its population.

Hence, productivity explains most of the differences in the standard of living across countries based on the value of output generated with a unit of input.

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