Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, duringthe course of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remainsthe same.Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2020 and 2050.Year20202050Year20202050Physical Capital(Tools per worker)2025Physical Capital(Tools per worker)1722HermesLabor Force(Workers)6060Labor Force(Workers)6060Output(Cases of argo)3,6004,320SvartaOutput(Cases of argo)1,8003,240Productivity(Cases per worker)6072Productivity(Cases per worker)3054Initially, the number of tools per worker was higher in Hermes than in Svarta. From 2020 to 2050, 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 smaller amount than productivity in Svarta. This illustrates theeffect. Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, duringthe course of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remainsthe same.Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2020 and 2050.Year20202050Physical Capital(Tools per worker)2025Physical Capitalworker)natural resourcescatch-uphuman capitaltechnology72HermesLabor Force(Workers)6060Labor Force(Workers)6060Output(Cases of argo)3,6004,320SvartaOutput(Cases of argo)1,8003,240Productivity(Cases per worker)6072Productivity(Cases per worker)3054of tools per worker was higher in Hermes than in Svarta. From 2020 to 2050, capital per worker rises by 5 units in each country.capital per worker causes productivity in Hermes to rise by a smaller amount than productivity in Svarta. This illustrates theeffect.

Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 30 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.

Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 30 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.

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 the hypothetical economies of Thalassa and Pelheim, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 25 years, the level of physical capital per worker rises by 4 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 2018 and 2043. Physical Capital Year (Tools per worker) 2018 13 2043 17 Year 2018 2043 Physical Capital (Tools per worker) 10 14 Thalassa Labor Force (Workers) 60 60 Output (Cases of argo) 6,000 7,200 Pelheim Labor Force (Workers) 60 60 Output (Cases of argo) 4,800 7,200 Productivity (Cases per worker) Productivity (Cases per worker) Initially, the number of tools per worker was higher in Thalassa than in Pelheim. From 2018 to 2043, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Thalassa to rise by a amount…
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