Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2059. Blahnik Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 11 30 1,800 2059 16 30 2,160 Gobbledigook Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 30 900 2059 13 30 1,620 %3D
Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2059. Blahnik Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 11 30 1,800 2059 16 30 2,160 Gobbledigook Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 30 900 2059 13 30 1,620 %3D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please answer all the questions below and give a detailed solution. Please double-check before submitting the answer.
Fill In The Blank Options Left to Right Top to Bottom:
larger or smaller
human capital or natural resources or catch-up or technology
Transcribed Image Text:4. The catch-up effect
Consider the economies of Blahnik and Gobbledigook, both of which produce glops of gloop using only tools and workers. Suppose that, during the
course of 40 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 2019 and 2059.
Blahnik
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Glops of gloop) (Glops per worker)
2019
11
30
1,800
2059
16
30
2,160
Gobbledigook
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Glops of gloop)
(Glops per worker)
2019
8
30
900
2059
13
30
1,620
Initially, the number of tools per worker was higher in Blahnik than in Gobbledigook. From 2019 to 2059, capital per worker rises by 5 units in each
country. The 5-unit change in capital per worker causes productivity in Blahnik to rise by a
amount than productivity in Gobbledigook.
This illustrates the
effect.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education