7 Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 15 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 2018 and 2033. Physical Capital Year (Tools per worker) 2018 2033 Year 2018 2033 18 23 Physical Capital (Tools per worker) 15 20 Hestiatia Labor Force (Workers) 60 60 60 Labor Force (Workers) 60 Output (Cases of argo) 3,600 4,320 Vanaheim Output (Cases of argo) 1,800 3,240 Productivity (Cases per worker) Productivity (Cases per worker) Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2018 to 2033, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hestiatia to rise by a amount than productivity in Vanaheim. This illustrates the effect.
7 Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 15 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 2018 and 2033. Physical Capital Year (Tools per worker) 2018 2033 Year 2018 2033 18 23 Physical Capital (Tools per worker) 15 20 Hestiatia Labor Force (Workers) 60 60 60 Labor Force (Workers) 60 Output (Cases of argo) 3,600 4,320 Vanaheim Output (Cases of argo) 1,800 3,240 Productivity (Cases per worker) Productivity (Cases per worker) Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2018 to 2033, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hestiatia to rise by a amount than productivity in Vanaheim. This illustrates the effect.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Consider the hypothetical economies of Hestiatia and Vanaheim, both of which produce cases of argo using only workers and tools. Suppose that,
during the course of 15 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 2018 and 2033.
Year
2018
2033
Year
2018
2033
Physical Capital
(Tools per worker)
18
23
Physical Capital
(Tools per worker)
15
20
Hestiatia
Labor Force
(Workers)
60
60
Vanaheim
Labor Force
Output
(Cases of argo)
3,600
4,320
(Workers)
60
60
Output
(Cases of argo)
1,800
3,240
Productivity
(Cases per worker)
Productivity
(Cases per worker)
Initially, the number of tools per worker was higher in Hestiatia than in Vanaheim. From 2018 to 2033, capital per worker rises by 5 units in each
country. The 5-unit change in capital per worker causes productivity in Hestiatia to rise by a
amount than productivity in Vanaheim. This
illustrates the
effect.
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