### Economic Analysis of Two Hypothetical Economies: Hermes and TralfamadoreBoth Hermes and Tralfamadore are economies that produce "gobs of goo" using only tools and workers. Over 50 years, each economy increases its physical capital by 5 tools per worker, with constant labor force size.**Task:**Calculate and complete the productivity (output per worker) for each economy in 2015 and 2065.#### Hermes| Year | Physical Capital (Tools per worker) | Labor Force (Workers) | Output (Gobs of goo) | Productivity (Gobs per worker) ||------|-------------------------------------|------------------------|----------------------|--------------------------------|| 2015 | 11 | 30 | 1,800 | || 2065 | 16 | 30 | 2,160 | |#### Tralfamadore| Year | Physical Capital (Tools per worker) | Labor Force (Workers) | Output (Gobs of goo) | Productivity (Gobs per worker) ||------|-------------------------------------|------------------------|----------------------|--------------------------------|| 2015 | 8 | 30 | 900 | || 2065 | 13 | 30 | 1,620 | |**Instructions:**- Calculate the productivity by dividing the total output by the number of workers for each year and economy.

The ratio that depicts the volume of input being used and the volume of output being produced is…

Consider the economies of Hermes and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 50 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 2015 and 2065. Hermes Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 11 30 1,800 2065 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per wvorker) 2015 30 900 2065 13 30 1,620

Consider the economies of Hermes and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 50 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 2015 and 2065. Hermes Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 11 30 1,800 2065 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per wvorker) 2015 30 900 2065 13 30 1,620

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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