3. Productivity and growth policies Consider a hypothetical small island nation in which the only industry is publishing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year 2037 2038 Physical Capital (Printing presses) 120 400 Based on your calculations, productivity from 2037 to 2038. Labor Force Physical Capital per Worker Labor Hours (Workers) (Printing presses) 60 100 (Hours) 3,300 3,500 Suppose you're in charge of establishing economic policy for this small island country. Output (Books) 23,100 49,000 in physical capital per worker from 2037 to 2038 is associated with Which of the following policies would lead to greater productivity in the publishing industry? Check all that apply. Labor Productivity (Books per hour of labor) Subsidizing research and development into new publishing technologies Sharply increasing the interest rate on student loans to people pursuing advanced degrees in publishing a decrease an increase Imposing a tax on printing presses O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts in labor
3. Productivity and growth policies Consider a hypothetical small island nation in which the only industry is publishing. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Year 2037 2038 Physical Capital (Printing presses) 120 400 Based on your calculations, productivity from 2037 to 2038. Labor Force Physical Capital per Worker Labor Hours (Workers) (Printing presses) 60 100 (Hours) 3,300 3,500 Suppose you're in charge of establishing economic policy for this small island country. Output (Books) 23,100 49,000 in physical capital per worker from 2037 to 2038 is associated with Which of the following policies would lead to greater productivity in the publishing industry? Check all that apply. Labor Productivity (Books per hour of labor) Subsidizing research and development into new publishing technologies Sharply increasing the interest rate on student loans to people pursuing advanced degrees in publishing a decrease an increase Imposing a tax on printing presses O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts in labor
Chapter1: Making Economics Decisions
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Transcribed Image Text:3. Productivity and growth policies
Consider a hypothetical small island nation in which the only industry is publishing. The following table displays information about the economy over a
two year period.
Complete the table by calculating physical capital per worker as well as labor productivity.
Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as
the quantity of goods per hour of labor.
Year
2037
2038
Physical Capital Labor Force Physical Capital per Worker Labor Hours
(Printing presses)
(Printing presses)
120
400
Based on your calculations,
productivity from 2037 to 2038.
(Workers)
60
100
(Hours)
3,300
3,500
Suppose you're in charge of establishing economic policy for this small island country.
Output
(Books)
23,100
49,000
in physical capital per worker from 2037 to 2038 is associated with
Which of the following policies would lead to greater productivity in the publishing industry? Check all that apply.
Labor Productivity
(Books per hour of labor)
a decrease
an increase
Subsidizing research and development into new publishing technologies
Sharply increasing the interest rate on student loans to people pursuing advanced degrees in publishing
Imposing a tax on printing presses
Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
in labor
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