Productivity is calculated as hours worked divided by output produced. b. Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. c. Both A and B are correct. d. None of the above are correct.

B

Explanation:

The productivity of a country can be a result of recession, national economy, inflation, competition etc. Productivity is calculated using the formula:

total output / total input.

For example, if a firm has an output of $70,000 worth of products using 1,000 labor hours (input), then the firm’s labor productivity will be gotten by dividing 70,000 by 1,000, which is 70. This means that the firm generates $70 per hour of work.

According to the Organization for Economic Cooperation and Development(OECD), the United States of America ranks 5th in the most productive countries while Indonesia isn't even in the top 35.

From the explanations given, it can be deduced that option A is wrong while option B is correct.

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