Question

Consider the table below-containing data for two nations, Alfa and Beta, for the years 1995 and 2015.

	1995		2015
Country	Average labor productivity	Output per person	Average labor productivity	Output per person
Alfa	$42,770	$14,114	$39,773	$20,661
Beta	$27,975	$13,428	$44,765	$21,935

a. Which of the following statements are true for nations Alfa and Beta:

	Labor productivity increased in both nations.
	Labor productivity decreased in both nations.
	Living standards increased in both nations.
	Living standards increased in Beta but not an Alfa.

b. Is it possible for average living standards to rise during a period in which average labor productivity is falling?

	No, because average living standards only increase because of increased labor productivity.
	Yes, if the output per person is falling less than labor productivity.
	No, because average living standards are measured as output per worker.
	Yes, if the nation experiences increased employment relative to population.