Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 10 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 2016 and 2026. **THE TABLE IS ATTACHED** Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2016 to 2026, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hermes to rise by a _________ (LARGER/SMALLER) amount than productivity in Gribinez. This illustrates the _______ (CATCH-UP/NATURAL RESOURCES/TECHNOLOGY/HUMAN CAPITAL) effect. THANK YOU FOR THE HELP
Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 10 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 2016 and 2026. **THE TABLE IS ATTACHED** Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2016 to 2026, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hermes to rise by a _________ (LARGER/SMALLER) amount than productivity in Gribinez. This illustrates the _______ (CATCH-UP/NATURAL RESOURCES/TECHNOLOGY/HUMAN CAPITAL) effect. THANK YOU FOR THE HELP
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 10 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 2016 and 2026.
**THE TABLE IS ATTACHED**
Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2016 to 2026, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hermes to rise by a _________ (LARGER/SMALLER) amount than productivity in Gribinez. This illustrates the _______ (CATCH-UP/NATURAL RESOURCES/TECHNOLOGY/HUMAN CAPITAL) effect.
THANK YOU FOR THE HELP

Transcribed Image Text:Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2016 and 2026.
Hermes
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Gaggles of gop)
(Gaggles per worker)
2016
40
3,200
2026
13
40
3,840
Gribinez
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Gaggles of gop)
(Gaggles per worker)
2016
40
2,000
2026
10
40
3,280
Expert Solution

Step 1.
Productivity = Output / Labor force.
So:
(A) Hermes
Productivity in 2016 = 3200 / 40 = 80
Productivity in 2026 = 3840 / 40 = 96
(B) Gribinez
Productivity in 2016 = 2000 / 40 = 50
Productivity in 2026 = 3280 / 40 = 82
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