Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, duringthe course of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remainsthe same.Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2020 and 2050.Year20202050Year20202050Physical Capital(Tools per worker)2025Physical Capital(Tools per worker)1722HermesLabor Force(Workers)6060Labor Force(Workers)6060Output(Cases of argo)3,6004,320SvartaOutput(Cases of argo)1,8003,240Productivity(Cases per worker)6072Productivity(Cases per worker)3054Initially, the number of tools per worker was higher in Hermes than in Svarta. From 2020 to 2050, 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 smaller amount than productivity in Svarta. This illustrates theeffect. Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, duringthe course of 30 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remainsthe same.Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2020 and 2050.Year20202050Physical Capital(Tools per worker)2025Physical Capitalworker)natural resourcescatch-uphuman capitaltechnology72HermesLabor Force(Workers)6060Labor Force(Workers)6060Output(Cases of argo)3,6004,320SvartaOutput(Cases of argo)1,8003,240Productivity(Cases per worker)6072Productivity(Cases per worker)3054of tools per worker was higher in Hermes than in Svarta. From 2020 to 2050, capital per worker rises by 5 units in each country.capital per worker causes productivity in Hermes to rise by a smaller amount than productivity in Svarta. This illustrates theeffect.

Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 30 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.

Consider the hypothetical economies of Hermes and Svarta, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 30 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.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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