3. Productivity and growth policies Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years. 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. Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Garmjnts) (Garments per hour of labor) Year (Looms) (Workers) (Looms) (Hours) 2029 120 60 3,300 23,100 2030 400 100 3,500 49,000 Based on your calculations, In physical capital per worker from 2029 to 2030 is associated with in labor productivity from 2029 to 2030. Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. O Offering free public education to every worker in the country O Subsidizing research and development into new weaving technologies D Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts O Imposing a tax on looms
3. Productivity and growth policies Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years. 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. Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Garmjnts) (Garments per hour of labor) Year (Looms) (Workers) (Looms) (Hours) 2029 120 60 3,300 23,100 2030 400 100 3,500 49,000 Based on your calculations, In physical capital per worker from 2029 to 2030 is associated with in labor productivity from 2029 to 2030. Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. O Offering free public education to every worker in the country O Subsidizing research and development into new weaving technologies D Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts O Imposing a tax on looms
Chapter1: Making Economics Decisions
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Transcribed Image Text:3. Productivity and growth policies
Consider a small island country whose only industry is weaving. The following table shows information about the small economy In two different years.
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.
Physical Capital
Labor Force
Physical Capital per Worker
Labor Hours
Output
Labor Productivity
(Garments) (Garments per hour of labor)
Year
(Looms)
(Workers)
(Looms)
(Hours)
2029
120
60
3,300
23,100
2030
400
100
3,500
49,000
Based on your calculations,
In physical capital per worker from 2029 to 2030 is associated with
in labor
productivity from 2029 to 2030.
Suppose you're in charge of establishing economic policy for this small island country.
Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply.
O Offering free public education to every worker in the country
O Subsidizing resea
and development into new weaving technologies
D Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
O Imposing a tax on looms
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