2. The determinants of productivityConsider a simple economy whose only industry is weaving. In this industry, productivity-the amount of goods and services a worker can produce perhour-is measured by the number of garments one weaver makes per hour.In the following table, match each example to the productivity determinant it represents.Human CapitalTechnologicalKnowledgeNatural ResourcesPhysical Capitalper WorkerExamplesper Workerper WorkerA special technique that workers can use tocreate stronger textilesThe looms used to weave the textilesThe grasslands supporting the sheep whose woolis used for weavingThe accumulated weaving experience of theworkforce

The standard of living of any country directly depends on the productivity of the citizens in the country because the total income of all the individuals in the economy or the total economy's income is equal to the total output in the economy that also represents the GDP of a nation. The productivity in simple terms is the ability of a worker or employee to produce products and services in a given time period. There are four kinds of productivity determinants: technological knowledge, natural resources, human capital, and physical capital. Human Capital: Human capital is basically the human working to produce goods and services. It is basically dependent on education, training, skills, and experience. Natural Resources: Natural resources are those which are provided to the business by nature which includes minerals, rivers, land and other. Physical Capital: The goods and assets that are used for the production of goods and services. In other terms, the machinery, tools and other equipment in the business operations are included in the human capital. Technological Knowledge: The best ways to produce items or services and using advanced techniques comes under the technical knowledge. Therefore, A special technique that workers can use to create stronger textiles: Technological Knowledge The looms used to weave the textiles: Physical Capital per Worker The grasslands supporting the sheep whose wool is used for weaving: Natural Resources per Worker The accumulated weaving experience of the workforce: Human Capital per Worker

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In the following table, match each example to the productivity determinant it represents. Human Capital per Worker Natural Resources Physical Capital per Worker Technological Knowledge Examples per Worker A special technique that workers can use to create stronger textiles The looms used to weave the textiles The grasslands supporting the sheep whose wool is used for weaving The accumulated weaving experience of the workforce

In the following table, match each example to the productivity determinant it represents. Human Capital per Worker Natural Resources Physical Capital per Worker Technological Knowledge Examples per Worker A special technique that workers can use to create stronger textiles The looms used to weave the textiles The grasslands supporting the sheep whose wool is used for weaving The accumulated weaving experience of the workforce

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. The determinants of productivity
Consider a simple economy whose only industry is weaving. In this industry, productivity-the amount of goods and services a worker can produce per
hour-is measured by the number of garments one weaver makes per hour.
In the following table, match each example to the productivity determinant it represents.
Human Capital
Technological
Knowledge
Natural Resources
Physical Capital
per Worker
Examples
per Worker
per Worker
A special technique that workers can use to
create stronger textiles
The looms used to weave the textiles
The grasslands supporting the sheep whose wool
is used for weaving
The accumulated weaving experience of the
workforce

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Suppose there is a simple hypothetical economy in which the only industry is weaving. In the weaving field, productivity-the amount of goods and services a worker can produce per hour-is measured by the number of garments one weaver makes per hour. In the following table, select the appropriate productivity determinant that represents each example. Human Capital per Worker Natural Resources per Worker Examples A special technique that workers can use to create stronger textiles The looms used to weave the textiles The accumulated weaving experience of the workforce The grasslands supporting the sheep whose wool is used for weaving O Physical Capital per Worker O Technological Knowledge O O
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