Physical Capital Year (Tools per worker) Labor Force (Workers) 2026 15 70 2051 20 70 Output Productivity (Crates of copia) (Crates per worker) 5,600 6,720 Vanaheim Physical Capital Year (Tools per worker) 2026 12 2051 17 Labor Force (Workers) 70 70 Output Productivity (Crates of copia) (Crates per worker) 3,500 5,740 Initially, the number of tools per worker was higher in Hermes than in Vanaheim. From 2026 to 2051, 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 amount than productivity in Vanaheim. This illustrates the effect.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter1: Welcome To Economics!
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Physical Capital
Year (Tools per worker)
2026
2051
15
20
Hermes
Labor Force
(Workers)
Output
Productivity
(Crates of copia)
(Crates per worker)
70
5,600
70
6,720
Vanaheim
Physical Capital
Year (Tools per worker)
2026
12
2051
17
Labor Force
(Workers)
70
70
Output
Productivity
(Crates of copia) (Crates per worker)
3,500
5,740
Initially, the number of tools per worker was higher in Hermes than in Vanaheim. From 2026 to 2051, 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
amount than productivity in Vanaheim. This
illustrates the
effect.
Transcribed Image Text:Physical Capital Year (Tools per worker) 2026 2051 15 20 Hermes Labor Force (Workers) Output Productivity (Crates of copia) (Crates per worker) 70 5,600 70 6,720 Vanaheim Physical Capital Year (Tools per worker) 2026 12 2051 17 Labor Force (Workers) 70 70 Output Productivity (Crates of copia) (Crates per worker) 3,500 5,740 Initially, the number of tools per worker was higher in Hermes than in Vanaheim. From 2026 to 2051, 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 amount than productivity in Vanaheim. This illustrates the effect.
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