Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2059. Blahnik Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 11 30 1,800 2059 16 30 2,160 Gobbledigook Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 30 900 2059 13 30 1,620 %3D

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 12SCQ: Why dues productivity growth in high-income economies not slow down as it runs into diminishing...
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larger or smaller
human capital or natural resources or catch-up or technology

4. The catch-up effect
Consider the economies of Blahnik and Gobbledigook, both of which produce glops of gloop using only tools and workers. Suppose that, during the
course of 40 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 2019 and 2059.
Blahnik
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Glops of gloop) (Glops per worker)
2019
11
30
1,800
2059
16
30
2,160
Gobbledigook
Physical Capital
Labor Force
Output
Productivity
Year
(Tools per worker)
(Workers)
(Glops of gloop)
(Glops per worker)
2019
8
30
900
2059
13
30
1,620
Initially, the number of tools per worker was higher in Blahnik than in Gobbledigook. From 2019 to 2059, capital per worker rises by 5 units in each
country. The 5-unit change in capital per worker causes productivity in Blahnik to rise by a
amount than productivity in Gobbledigook.
This illustrates the
effect.
Transcribed Image Text:4. The catch-up effect Consider the economies of Blahnik and Gobbledigook, both of which produce glops of gloop using only tools and workers. Suppose that, during the course of 40 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 2019 and 2059. Blahnik Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 11 30 1,800 2059 16 30 2,160 Gobbledigook Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker) 2019 8 30 900 2059 13 30 1,620 Initially, the number of tools per worker was higher in Blahnik than in Gobbledigook. From 2019 to 2059, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Blahnik to rise by a amount than productivity in Gobbledigook. This illustrates the effect.
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