EBK MACROECONOMICS
7th Edition
ISBN: 8220106812686
Author: O'Brien
Publisher: PEARSON
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Question
Chapter 11, Problem 11.2.5PA
Sub part (a):
To determine
The results move along output per worker production functions or results in shift of per worker production functions.
Sub part (b):
To determine
The results move along output per worker production functions or results in shift of per worker production functions.
Sub part (c):
To determine
The results move along output per worker production functions or results in shift of per worker production functions.
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Consider a small island country whose only industry is fishing. The following table presents information about this small economy in two different years.
Complete the table by calculating physical capital per worker and labor productivity.
Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor.
Year
Physical Capital
Labor Force
Physical Capital per Worker
Labor Hours
Output
Labor Productivity
(Fishing poles)
(Workers)
(Fishing poles)
(Hours)
(Fish)
2027
120
60
1x
3,000
21,000
3x
2028
400
100
2x
3,500
49,000
4x
Based on your calculations, (an increase/a decrease) in physical capital per worker from 2027 to 2028 is associated with (an increase/a decrease) in labor productivity from 2027 to 2028.
Suppose you're in charge of establishing economic policy for this small island country.
Which…
Consider the per-worker production function graph.
If there is an increase in capital per hour worked, holding technology constant, then
A. there is a movement from A to B.
B. there is a movement from A to C.
C. there is a movement from B to D.
D. there is a movement from D to C.
If there is an increase in technology, holding constant the quantity of capital per hour worked, then
A. there is a movement from C to D.
B. there is a movement from A to B.
C. there is a movement from D to B.
D. there is a movement from A to C.
C
Real GDP per hour worked (Y/L)
10-
Y/L2
Y/L₁
Per-Worker
Production Function
C
3
B
Per Worker
Production Function 1
K/L₁
K/L₂
Capital per hour worked (K/L)
10
Chapter 11 Solutions
EBK MACROECONOMICS
Ch. 11 - Prob. 11.1.1RQCh. 11 - Prob. 11.1.2RQCh. 11 - Prob. 11.1.3PACh. 11 - Prob. 11.1.4PACh. 11 - Prob. 11.1.5PACh. 11 - Prob. 11.1.6PACh. 11 - Prob. 11.1.7PACh. 11 - Prob. 11.1.8PACh. 11 - Prob. 11.2.1RQCh. 11 - Prob. 11.2.2RQ
Ch. 11 - Prob. 11.2.3RQCh. 11 - Prob. 11.2.4RQCh. 11 - Prob. 11.2.5PACh. 11 - Prob. 11.2.6PACh. 11 - Prob. 11.2.7PACh. 11 - Prob. 11.2.8PACh. 11 - Prob. 11.2.10PACh. 11 - Prob. 11.2.11PACh. 11 - Prob. 11.2.12PACh. 11 - Prob. 11.3.1RQCh. 11 - Prob. 11.3.2RQCh. 11 - Prob. 11.3.3PACh. 11 - Prob. 11.3.4PACh. 11 - Prob. 11.3.5PACh. 11 - Prob. 11.3.6PACh. 11 - Prob. 11.4.1RQCh. 11 - Prob. 11.4.2RQCh. 11 - Prob. 11.4.3RQCh. 11 - Prob. 11.4.4PACh. 11 - Prob. 11.4.5PACh. 11 - Prob. 11.4.6PACh. 11 - Prob. 11.4.8PACh. 11 - Prob. 11.4.9PACh. 11 - Prob. 11.4.10PACh. 11 - Prob. 11.4.11PACh. 11 - Prob. 11.4.12PACh. 11 - Prob. 11.5.1RQCh. 11 - Prob. 11.5.2RQCh. 11 - Prob. 11.5.3PACh. 11 - Prob. 11.5.4PACh. 11 - Prob. 11.5.5PACh. 11 - Prob. 11.5.6PACh. 11 - Prob. 11.5.7PACh. 11 - Prob. 11.5.8PACh. 11 - Prob. 11.5.9PACh. 11 - Prob. 11.1RDECh. 11 - Prob. 11.2RDECh. 11 - Prob. 11.3RDE
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