Consider the table below containing data for Germany and Japan on the ratio of employment to population and GDP per capita for the years 1980 and 2010. Country1980 Ratio of employment to population1980 GDP per capita2010 Ratio of employment to population2010 GDP per capita
Germany0.33$14,1140.52$20,661
Japan0.48$13,4280.49$21,935
(A) Complete the table
Average labor productivity

Country19802010
Germany$$
Japan$$
(B) In Germany, GDP per capita increased:
both because increased labor productivity and increased employment relative to population equally.

only because of increased labor productivity.

mostly because of increased employment relative to population.

only because of increased employment relative to population.

(C) In Japan, GDP per capita increased:
mostly because of increased labor productivity.

mostly because of increased employment relative to population.

only because of increased employment relative to population only.

both because increased labor productivity and increased employment relative to population equally.

Labor Productivity and GDP per Capita:
GDP per capita is a common measure of a country's standard of living. This statistic measures the dollar value of goods and services an economy can produce on a per citizen basis. GDP per capita is also related to labor productivity, which is the value of output produced on a per worker basis. Though related, these two statistics are different since not every citizen works. In fact, GDP per capita is the product of labor productivity and labor force participation (the latter is the number of the labor force divided by the population).