Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over atwo 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 asthe quantity of goods per hour of labor.Physical Capital(Looms)120Year20372038400Labor Force(Workers)60100Based on your calculations,productivity from 2037 to 2038.Physical Capital per Worker(Looms)Labor HoursImposing a tax on looms(Hours)3,0003,500Suppose you're in charge of establishing economic policy for this small island country.Output(Tapestries)21,00049,000in physical capital per worker from 2037 to 2038 is associated withWhich of the following policies would lead to greater productivity in the weaving industry? Check all that apply.Imposing restrictions on foreign ownership of domestic capitalSubsidizing research and development into new weaving technologiesLabor Productivity(Tapestries per hour of labor)in labor

Physical capital per worker measures the physical capital per unit of labor. Formula: Physical…

Based on your calculations, productivity from 2037 to 2038. in physical capital per worker from 2037 to 2038 is associated with Suppose you're in charge of establishing economic policy for this small island country. in labor

Based on your calculations, productivity from 2037 to 2038. in physical capital per worker from 2037 to 2038 is associated with Suppose you're in charge of establishing economic policy for this small island country. in labor

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

Consider a hypothetical small island nation in which the only industry is weaving. 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.
Physical Capital
(Looms)
120
Year
2037
2038
400
Labor Force
(Workers)
60
100
Based on your calculations,
productivity from 2037 to 2038.
Physical Capital per Worker
(Looms)
Labor Hours
Imposing a tax on looms
(Hours)
3,000
3,500
Suppose you're in charge of establishing economic policy for this small island country.
Output
(Tapestries)
21,000
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 weaving industry? Check all that apply.
Imposing restrictions on foreign ownership of domestic capital
Subsidizing research and development into new weaving technologies
Labor Productivity
(Tapestries per hour of labor)
in labor

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