4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2022 and 2052. Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2022 11 30 1,800 2052 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2022 8 30 900 2052 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2022 to 2052, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Sporon to rise by a amount than productivity in Tralfamadore. This illustrates the effect.

4. The catch-up effect Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2022 and 2052. Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2022 11 30 1,800 2052 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2022 8 30 900 2052 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2022 to 2052, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Sporon to rise by a amount than productivity in Tralfamadore. This illustrates the effect.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. The catch-up effect
Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course
of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same.
Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2022 and 2052.
Sporon
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Gobs of goo)
(Gobs per worker)
2022
11
30
1,800
2052
16
30
2,160
Tralfamadore
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Gobs of goo)
(Gobs per worker)
2022
30
900
2052
13
30
1,620
Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2022 to 2052, capital per worker rises by 5 units in each
country. The 5-unit change in capital per worker causes productivity in Sporon to rise by a
amount than productivity in Tralfamadore.
This illustrates the
effect.

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