4. Productivity and growth policies Consider a small island country whose only industry is printing. 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 labour 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 labour. Physical Capital Year (Printing presses) 2033 2034 300 480 Based on your calculations, productivity from 2033 to 2034. Labour Force Physical Capital per Worker (Workers) (Printing presses) 100 120 Labour Hours (Hours) 5,000 4,200 Output (Books) 45,000 50,400 in physical capital per worker from 2033 to 2034 is associated with Suppose you're in charge of establishing economic policy for this small island country. Labour Productivity (Books per hour of labour) Which of the following policies would lead to greater productivity in the printing industry? Check all that apply. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing a tax on printing presses Sharply increasing the interest rate on student loans to people pursuing advanced degrees in printing Subsidizing research and development of new printing technologies in labour
4. Productivity and growth policies Consider a small island country whose only industry is printing. 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 labour 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 labour. Physical Capital Year (Printing presses) 2033 2034 300 480 Based on your calculations, productivity from 2033 to 2034. Labour Force Physical Capital per Worker (Workers) (Printing presses) 100 120 Labour Hours (Hours) 5,000 4,200 Output (Books) 45,000 50,400 in physical capital per worker from 2033 to 2034 is associated with Suppose you're in charge of establishing economic policy for this small island country. Labour Productivity (Books per hour of labour) Which of the following policies would lead to greater productivity in the printing industry? Check all that apply. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing a tax on printing presses Sharply increasing the interest rate on student loans to people pursuing advanced degrees in printing Subsidizing research and development of new printing technologies in labour
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 10SCQ: What are the advantages of backwardness for economic growth?
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Transcribed Image Text:4. Productivity and growth policies
Consider a small island country whose only industry is printing. 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 labour 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 labour.
Year
2033
2034
Physical Capital
(Printing presses)
300
480
Based on your calculations,
productivity from 2033 to 2034.
Labour Force Physical Capital per Worker Labour Hours
(Workers)
(Printing presses)
(Hours)
100
5,000
120
4,200
Output Labour Productivity
(Books) (Books per hour of labour)
45,000
50,400
in physical capital per worker from 2033 to 2034 is associated with
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 printing industry? Check all that apply.
Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
Imposing a tax on printing presses
Sharply increasing the interest rate on student loans to people pursuing advanced degrees in printing
Subsidizing research and development of new printing technologies
in labour
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