Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2025 and 2055. Year 2025 2055 Year 2025 2055 Physical Capital (Tools per worker) 20 25 Physical Capital (Tools per worker) 17 22 Labor Force (Workers) 60 60 Labor Force (Workers) 60 60 Hermes effect. Output (Crates of copia) 3,600 4,320 Svarta Output (Crates of copia) 1,800 3,240 Productivity (Crates per worker) Productivity (Crates per worker) Initially, the number of tools per worker was higher in Hermes than in Svarta. From 2025 to 2055, 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 Svarta. This illustrates the

Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2025 and 2055. Year 2025 2055 Year 2025 2055 Physical Capital (Tools per worker) 20 25 Physical Capital (Tools per worker) 17 22 Labor Force (Workers) 60 60 Labor Force (Workers) 60 60 Hermes effect. Output (Crates of copia) 3,600 4,320 Svarta Output (Crates of copia) 1,800 3,240 Productivity (Crates per worker) Productivity (Crates per worker) Initially, the number of tools per worker was higher in Hermes than in Svarta. From 2025 to 2055, 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 Svarta. This illustrates the

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 1TY

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Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at 2 for 25 years and the productivity of Mexicos workers grows at 6 for 25 years, which country will have higher worker productivity at that point?
Consider the economies of Sporon and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2015 and 2035. Sporon Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 11 30 1,800 2035 16 30 2,160 Gobbledigook Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2015 8 30 900 2035 13 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Gobbledigook. From 2015 to 2035, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker…
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…
In his 2020 State of the Nation Address (SoNA), president of South Africa humbly noted... "Even if we [the government] were to marshal every single resource at our disposal, and engage on a huge expenditure of public funds,we would not alone be able to guarentee employment to the millions of people who are out of work". Without growth there will be no jobs,and without jobs there will be no meaningful improvement in the lives of our people". Using the South African SoNA 2020 as a reference,discuss the examples of the different ways that South African government intervenes in the economy.
Canadian real GDP per capita is 50,097 (measured in constant 2017 USD, same for thefollowing numbers) in the year 2019 and 40,489 in the year 1999. Canadian real capital stockper capita is 226,225 in the year 2019 and 155,256 in 1999. Calculate the growth rate of GDPper capita in Canada for these two decades, as well as the contribution from productivitygrowth and that from capital accumulation. You can use a capital share α of 1/3.
In macroeconomics, the connection from inputs to outputs forthe entire economy is called _______________. a)physical capital b)a production function c)human capital d)an aggregateproduction function
The table below shows the possible combinations of consumer and capital goods produced by a country in 2020 using all its available resources and technology. Use the table to answer the question that follow. Possibilities Consumer goods(‘000) in tons Capital goods (‘000)In tons A 0 1800 B 450 1600 C 750 1400 D 1200 1100 E 1350 800 F 1500 500 G 1700 0 (iv) Under what condition will the country produce 1,700,000 tons of consumer goods(v) Using a scale of 2cm to 500,000 on both axes, graphically represent the data above(vi) Indicate on the graph point Q,R,S to represent efficient, unattainable and inefficient output combination respectively (vii) Explain why point R is an unattainable output combination?(viii) Explain why point S is an inefficient output combination
Which of the below statements in INCORRECT about "labor productivity"? A) Economies that produce with more labor-hours and less technology and physical capital have higher labor productivity and are richer economies. B) Labor productivity is the output produced per one unit of worker-time. The unit of time commonly used to calculate labor productivity is one hour. C) Higher labor productivity implies a higher standard of living. D)An economy's output or GDP increases as its labor productivity increases. E) Labor productivity is higher in more industrially advanced technologically efficient economies, than in poor, less-developed, technology-strapped economies.
Imagine two countries, i and j. You have the following information: si = 2 sj s= saving rate hi= hj h=human capital 2Ai = Aj A=technology What can you infer about long-run income per worker differences between these countries? Explain formally.
What is the relationship between innovation and economic development? Explain in detail in micro and macro terms.
Real GDP per capita is 49,773 (measured in constant 2017 International Dollar, same for the following numbers) in the year 2019 for Canada, and 62,491 for the United States. Real capital stock per capita is 225,268 in the year 2019 for Canada and 209,866 for the United States. Decompose the differences in real GDP per capita between Canada and the United States into the contribution from productivity and that from capital accumulation. Explain using your results why real GDP per capita is lower in Canada than in the United States. You can use a capital share α of 1/3.
The table below lists GDP and GDP growth rates for the countries of Cortania, Microtania, and Boxtown. Fill in the final column, which asks for the GDP in each country 13 years later. Country GDP in $ billions GDP annual growth rate (%) Cortania Microtania Boxtown 10600.00 44000.00 48100.00 3 2 4.5 Gl