Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years. 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 Physical Capital per Worker Labor Hours Output Labor Productivity Year (Fishing poles) (Workers) (Fishing poles) (Hours) (Fish) (Fish per hour of labor) 2016 300 100 4,000 36,000 2017 480 120 4,200 50,400 Based on your calculations, in physical capital per worker from 2016 to 2017 is associated with v in labor productivity from 2016 to 2017. 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 fishing industry? Check all that apply. O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing restrictions on foreign ownership of domestic capital Imposing a tax on fishing poles O Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing O O O O
Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years. 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 Physical Capital per Worker Labor Hours Output Labor Productivity Year (Fishing poles) (Workers) (Fishing poles) (Hours) (Fish) (Fish per hour of labor) 2016 300 100 4,000 36,000 2017 480 120 4,200 50,400 Based on your calculations, in physical capital per worker from 2016 to 2017 is associated with v in labor productivity from 2016 to 2017. 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 fishing industry? Check all that apply. O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing restrictions on foreign ownership of domestic capital Imposing a tax on fishing poles O Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing O O O O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![**Economic Analysis of a Small Island Fishing Industry**
Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years.
### Table: Fishing Industry Statistics
| Year | Physical Capital (Fishing poles) | Labor Force (Workers) | Physical Capital per Worker (Fishing poles) | Labor Hours (Hours) | Output (Fish) | Labor Productivity (Fish per hour of labor) |
|------|---------------------------------|-----------------------|-------------------------------------------|---------------------|--------------|---------------------------------------------|
| 2016 | 300 | 100 | | 4,000 | 36,000 | |
| 2017 | 480 | 120 | | 4,200 | 50,400 | |
*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.
**Analysis Questions:**
1. Based on your calculations, ___________________ in physical capital per worker from 2016 to 2017 is associated with ___________________ in labor productivity from 2016 to 2017.
2. 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 fishing industry? Check all that apply.**
- [ ] Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
- [ ] Imposing restrictions on foreign ownership of domestic capital
- [ ] Imposing a tax on fishing poles
- [ ] Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing
This educational exercise encourages critical thinking about the relationship between capital investment and productivity, helping students to understand economic growth and policy implications in a simplified context.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc10228f-3a2e-4a24-9e76-51af60998a9e%2Fc53bf634-3832-452b-8056-afd0198637de%2Ffhdsja8_processed.png&w=3840&q=75)
Transcribed Image Text:**Economic Analysis of a Small Island Fishing Industry**
Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years.
### Table: Fishing Industry Statistics
| Year | Physical Capital (Fishing poles) | Labor Force (Workers) | Physical Capital per Worker (Fishing poles) | Labor Hours (Hours) | Output (Fish) | Labor Productivity (Fish per hour of labor) |
|------|---------------------------------|-----------------------|-------------------------------------------|---------------------|--------------|---------------------------------------------|
| 2016 | 300 | 100 | | 4,000 | 36,000 | |
| 2017 | 480 | 120 | | 4,200 | 50,400 | |
*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.
**Analysis Questions:**
1. Based on your calculations, ___________________ in physical capital per worker from 2016 to 2017 is associated with ___________________ in labor productivity from 2016 to 2017.
2. 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 fishing industry? Check all that apply.**
- [ ] Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
- [ ] Imposing restrictions on foreign ownership of domestic capital
- [ ] Imposing a tax on fishing poles
- [ ] Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing
This educational exercise encourages critical thinking about the relationship between capital investment and productivity, helping students to understand economic growth and policy implications in a simplified context.
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
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