1. In Figure 7.1, panel (c) shows the case where Country 1 has higher output than Country 2 because it has more factors of production and higher productivity than Country 2. Draw similar diagrams showing the following two situations: a. Country 1 has both higher output per worker and higher productivity than

ECON MACRO
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ISBN:9781337000529
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Chapter8: Productivity And Growth
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1. In Figure 7.1, panel (c) shows the case where
Country 1 has higher output than Country 2
because it has more factors of production and
higher productivity than Country 2. Draw
similar diagrams showing the following two
situations:
a. Country 1 has both higher output per
worker and higher productivity than
Country 2, but it has a lower level of factors
of production than Country 2.
b. Country 1 has both higher output per
worker and more factors of production
than Country 2, but it has a lower level of
productivity than Country 2.
Transcribed Image Text:1. In Figure 7.1, panel (c) shows the case where Country 1 has higher output than Country 2 because it has more factors of production and higher productivity than Country 2. Draw similar diagrams showing the following two situations: a. Country 1 has both higher output per worker and higher productivity than Country 2, but it has a lower level of factors of production than Country 2. b. Country 1 has both higher output per worker and more factors of production than Country 2, but it has a lower level of productivity than Country 2.
(c) Country 1 has higher
output and higher
factor accumulation.
Output per worker
Country 1
Country 2
n
Factors of production
per worker
Transcribed Image Text:(c) Country 1 has higher output and higher factor accumulation. Output per worker Country 1 Country 2 n Factors of production per worker
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