Consider the table below containing data for Germany and Japan on the ratio of employment to population and GDP per person for the years 1980 and 2010.

**Country19802010Ratio of employment to populationGDP per personRatio of employment to populationGDP per person**Germany

0.33

$ 14,114

0.52

$ 20,661

Japan

0.48

$ 13,428

0.49

$ 21,935

Calculate the average labor productivity for the years 1980 and 2010.

**Instructions:** Enter your responses as whole numbers.

**Country**

**Average labor productivity19802010**Germany

$

$

Japan

$

$

In Germany, GDP per person increased:

multiple choice 1

only because of increase in labor productivity.

mostly because of an increase in employment relative to population.

only because of an increase in employment relative to population.

because of an equal increase in labor productivity and employment relative to population.

In Japan, GDP per person increased:

multiple choice 2

mostly because of an increase in labor productivity.

only because of an increase in employment relative to population only.

mostly because of an increase in employment relative to population.

because of an equal increase in labor productivity and employment relative to population.

To calculate the **average labor productivity** for each country in 1980 and 2010, we'll use the formula:

\[
\text{Average Labor Productivity} = \frac{\text{GDP per person}}{\text{Ratio of employment to population}}
\]

This gives us the output per worker in each period. Let’s calculate the values for both Germany and Japan in the years 1980 and 2010.

### **Germany:**
1. **1980**:
   \[
   \text{Average Labor Productivity} = \frac{14,114}{0.33} = 42,769
   \]
2. **2010**:
   \[
   \text{Average Labor Productivity} = \frac{20,661}{0.52} = 39,735
   \]

### **Japan:**
1. **1980**:
   \[
   \text{Average Labor Productivity} = \frac{13,428}{0.48} = 27,975
   \]
2. **2010**:
   \[
   \text{Average Labor Productivity} = \frac{21,935}{0.49} = 44,765
   \]

### **Summary:**

- **Germany:**
  - 1980: \$42,769
  - 2010: \$39,735
- **Japan:**
  - 1980: \$27,975
  - 2010: \$44,765

### **Interpretation of GDP per person increase:**

1. **For Germany:**
   - **Answer:** The increase in GDP per person occurred **mostly because of an increase in employment relative to population**. While the ratio of employment to population increased significantly (from 0.33 to 0.52), average labor productivity slightly declined.

2. **For Japan:**
   - **Answer:** The increase in GDP per person occurred **mostly because of an increase in labor productivity**. While the employment ratio remained relatively stable, labor productivity showed a strong increase from 1980 to 2010.

---

Would you like more details or have any questions?  
Here are 5 questions to deepen your understanding:
1. How is labor productivity related to GDP growth?
2. What factors could cause labor productivity to decline even with an increase in employment?
3. How can changes in the ratio of employment to population affect a country's GDP per person?
4. Why did Japan's labor productivity grow more than Germany's between 1980 and 2010?
5. How might technological advancements affect labor productivity?

**Tip:** Labor productivity can improve through innovations, education, or better technology, even if the employment-to-population ratio stays the same.

Consider the table below containing data for Germany and Japan on the ratio of employment to population and GDP per person for the years 1980 and 2010.

Country19802010Ratio of employment to populationGDP per personRatio of employment to populationGDP per person
Germany
0.33
$14,114
0.52
$20,661
Japan
0.48
$13,428
0.49
$21,935

Calculate the average labor productivity for the years 1980 and 2010.

Country
Average labor productivity19802010
Germany
$
$
Japan
$
$

In Germany, GDP per person increased:
- only because of increase in labor productivity.
- mostly because of an increase in employment relative to population.
- only because of an increase in employment relative to population.
- because of an equal increase in labor productivity and employment relative to population.

In Japan, GDP per person increased:
- mostly because of an increase in labor productivity.
- only because of an increase in employment relative to population only.
- mostly because of an increase in employment relative to population.
- because of an equal increase in labor productivity and employment relative to population.

Learn how to calculate the average labor productivity for Germany and Japan in 1980 and 2010, using the ratio of employment to population and GDP per person. Explore how changes in employment and productivity contributed to GDP per person. Suitable for students in Grades 9-12.

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