3. Productivity and growth policies Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as 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 2027 2028 Physical Capital Labor Force Physical Capital per Worker Labor Hours (Hours) (Looms) (Workers) (Looms) 160 40 1,800 3,900 180 Based on your calculations, uctivity from 2027 to 2028. 60 Output (Tapestries) 14,400 23,400 in physical capital per worker from 2027 to 2028 is associated with Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Offering free public education to every worker in the country Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Subsidizing research and development into new weaving technologies Imposing a tax on looms Labor Productivity (Tapestries per hour of labor) in labor
3. Productivity and growth policies Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as 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 2027 2028 Physical Capital Labor Force Physical Capital per Worker Labor Hours (Hours) (Looms) (Workers) (Looms) 160 40 1,800 3,900 180 Based on your calculations, uctivity from 2027 to 2028. 60 Output (Tapestries) 14,400 23,400 in physical capital per worker from 2027 to 2028 is associated with Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Offering free public education to every worker in the country Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving Subsidizing research and development into new weaving technologies Imposing a tax on looms Labor Productivity (Tapestries per hour of labor) in labor
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 4P
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ips
]
3. Productivity and growth policies
Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a
two year period.
Complete the table by calculating physical capital per worker as well as 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
2027
2028
Physical Capital Labor Force Physical Capital per Worker Labor Hours
(Looms)
(Looms)
160
180
(Workers)
40
60
Based on your calculations,
productivity from 2027 to 2028.
(Hours)
1,800
3,900
Output
Labor Productivity
(Tapestries) (Tapestries per hour of labor)
14,400
23,400
in physical capital per worker from 2027 to 2028 is associated with
Suppose you're in charge of establishing economic policy for this small island country.
Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply.
Offering free public education to every worker in the country
Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving
Subsidizing research and development into new weaving technologies
Imposing a tax on looms
in labor](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49c98c82-5012-4881-ba4f-472ed625c3a8%2Fa322e8b1-6d76-4026-bf67-41bdef91517d%2F8yfbxwm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ips
ips
]
3. Productivity and growth policies
Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a
two year period.
Complete the table by calculating physical capital per worker as well as 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
2027
2028
Physical Capital Labor Force Physical Capital per Worker Labor Hours
(Looms)
(Looms)
160
180
(Workers)
40
60
Based on your calculations,
productivity from 2027 to 2028.
(Hours)
1,800
3,900
Output
Labor Productivity
(Tapestries) (Tapestries per hour of labor)
14,400
23,400
in physical capital per worker from 2027 to 2028 is associated with
Suppose you're in charge of establishing economic policy for this small island country.
Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply.
Offering free public education to every worker in the country
Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving
Subsidizing research and development into new weaving technologies
Imposing a tax on looms
in labor
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