Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years. 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. Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity Year (Fishing poles) (Workers) (Fishing poles) (Hours) (Fish) (Fish per hour of labor) 2016 300 100 4,000 36,000 2017 480 120 4,200 50,400 Based on your calculations, in physical capital per worker from 2016 to 2017 is associated with v in labor productivity from 2016 to 2017. 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 fishing industry? Check all that apply. O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing restrictions on foreign ownership of domestic capital Imposing a tax on fishing poles O Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing O O O O
Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years. 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. Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity Year (Fishing poles) (Workers) (Fishing poles) (Hours) (Fish) (Fish per hour of labor) 2016 300 100 4,000 36,000 2017 480 120 4,200 50,400 Based on your calculations, in physical capital per worker from 2016 to 2017 is associated with v in labor productivity from 2016 to 2017. 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 fishing industry? Check all that apply. O Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts Imposing restrictions on foreign ownership of domestic capital Imposing a tax on fishing poles O Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing O O O O
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 11P
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Transcribed Image Text:Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years.
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.
Physical Capital
Labor Force
Physical Capital per Worker
Labor Hours
Output
Labor Productivity
Year
(Fishing poles)
(Workers)
(Fishing poles)
(Hours)
(Fish)
(Fish per hour of labor)
2016
300
100
4,000
36,000
2017
480
120
4,200
50,400
Based on your calculations,
in physical capital per worker from 2016 to 2017 is associated with
in labor
productivity from 2016 to 2017.
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 fishing industry? Check all that apply.
Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
Imposing restrictions on foreign ownership of domestic capital
Imposing a tax on fishing poles
Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishing
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