Over the past year, in a given country, labor productivity (measured in hours worked) has increased by 5%; the total number of hours worked has remained the same; the number of workers increased by 5%, while the general population increased by 3%. Given this information, what is the approximate growth in the standard of living of this country

Over the past year, in a given country, labor productivity (measured in hours worked) has increased by 5%; the total number of hours worked has remained the same; the number of workers increased by 5%, while the general population increased by 3%. Given this information, what is the approximate growth in the standard of living of this country

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 3P

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Assume an economy has grown by 8% per year over the past 20 years. During the same period, the labour force has grown by 2% per year and the quantity of physical capital has grown by 4% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.33%. Assume that human capital has not changed during the past 30 years. What is the growth rate in Physical Capital per worker over this time period? What is the growth rate in output per worker over this time period? How much has technological progress contributed to productivity growth?
Economic growth around the world The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, and it was the poorest economy in the table in the year 2010.
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