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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. Year 2035 2036 Physical Capital Labor Force (Workers) 100 120 (Looms) 300 480 Based on your calculations, productivity from 2035 to 2036. Physical Capital per Worker (Looms) Labor Hours (Hours) 4,000 4,200 Output (Tapestries) 36,000 50,400 in physical capital per worker from 2035 to 2036 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 weaving industry? Check all that apply. Labor Productivity (Tapestries per hour of labor) Imposing a tax on looms O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Offering free public education to every worker in the country in labor

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. Year 2035 2036 Physical Capital Labor Force (Workers) 100 120 (Looms) 300 480 Based on your calculations, productivity from 2035 to 2036. Physical Capital per Worker (Looms) Labor Hours (Hours) 4,000 4,200 Output (Tapestries) 36,000 50,400 in physical capital per worker from 2035 to 2036 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 weaving industry? Check all that apply. Labor Productivity (Tapestries per hour of labor) Imposing a tax on looms O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Offering free public education to every worker in the country in labor

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 Labor Force (Looms) (Workers) 300 100 480 120 Year 2035 2036 Based on your calculations, productivity from 2035 to 2036. Physical Capital per Worker (Looms) Labor Hours Imposing a tax on looms (Hours) 4,000 4,200 Suppose you're in charge of establishing economic policy for this small island country. Output (Tapestries) 36,000 50,400 in physical capital per worker from 2035 to 2036 is associated with Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Labor Productivity (Tapestries per hour of labor) Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Offering free public education to every worker in the country in labor
Transcribed Image Text: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 Labor Force (Looms) (Workers) 300 100 480 120 Year 2035 2036 Based on your calculations, productivity from 2035 to 2036. Physical Capital per Worker (Looms) Labor Hours Imposing a tax on looms (Hours) 4,000 4,200 Suppose you're in charge of establishing economic policy for this small island country. Output (Tapestries) 36,000 50,400 in physical capital per worker from 2035 to 2036 is associated with Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Labor Productivity (Tapestries per hour of labor) Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Offering free public education to every worker in the country in labor
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