Consider a small island country whose only industry is weaving. 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 (Looms) (Workers) 120 60 400 100 Year 2016 2017 Based on your calculations, productivity from 2016 to 2017. Physical Capital per Worker (Looms) Labor Hours (Hours) 3,000 3,500 in physical capital per worker from 2016 to 2017 is associated with Suppose you're in charge of establishing economic policy for this small island country. Imposing a tax on looms Subsidizing research and development into new weaving technologies Imposing restrictions on foreign ownership of domestic capital Output Labor Productivity (Garments) (Garments per hour of labor) 21,000 49,000 Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. ring the interest rate on student loans to people pursuing advanced degrees in weaving. ▼in labor
Consider a small island country whose only industry is weaving. 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 (Looms) (Workers) 120 60 400 100 Year 2016 2017 Based on your calculations, productivity from 2016 to 2017. Physical Capital per Worker (Looms) Labor Hours (Hours) 3,000 3,500 in physical capital per worker from 2016 to 2017 is associated with Suppose you're in charge of establishing economic policy for this small island country. Imposing a tax on looms Subsidizing research and development into new weaving technologies Imposing restrictions on foreign ownership of domestic capital Output Labor Productivity (Garments) (Garments per hour of labor) 21,000 49,000 Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. ring the interest rate on student loans to people pursuing advanced degrees in weaving. ▼in labor
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 34P: Say that the average worker in Canada has a productivity level of 30 per hour while the average...
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Transcribed Image Text:3. Productivity and growth policies
Consider a small island country whose only industry is weaving. 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
(Looms)
(Workers)
120
60
400
100
Year
2016
2017
Based on your calculations,
productivity from 2016 to 2017.
Physical Capital per Worker
(Looms)
Labor Hours
(Hours)
3,000
3,500
Output
(Garments)
21,000
49,000
in physical capital per worker from 2016 to 2017 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.
Imposing a tax on looms
Subsidizing research and development into new weaving technologies
Imposing restrictions on foreign ownership of domestic capital
Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving
Labor Productivity
(Garments per hour of labor)
in labor
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