Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 16, Problem 14E
To determine
State the difference between the total factor productivity and the productivity of labor. Reason behind the use of labor productivity as measurement for a nation's productivity.
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Students have asked these similar questions
Consider a closed economy.
Do we observe changes in total factor productivity? How are they calculated?
What determines how productive workers are? How do gains in labor productivity lead to gains in GDP per capita?
Economist believe there is a strong correlation between productivity and the standard of living. Why is this so
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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?arrow_forwardSay that the average worker in Canada has a productivity level of 30 per hour while the average worker in the United Kingdom has a productivity level of 25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1 per year while worker productivity in the UK grows 3 per year. After five years, whiz) will have the higher productivity level, and by how much?arrow_forwardDefine the term labor productivity?arrow_forward
- Suppose you are given data on the rate of growth of GDP, capital, and labour, and the share of these two factors in GDP. How would you calculate the contribution of Total Factor Productivity to growth? Explain it verbally and formally.arrow_forward50. Between 2008 and 2016, Russia's real GDP increased by6.7%, its labor force grew by0.5%, and its total capital stock grew by17.5%. Assuming that labor's share of production (and total income) was60%, by how much did total factor productivity change?arrow_forwardEconomist believe there is a strong correlation between productivity and the standard of living? Discuss. [HINT: In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity and explain how each of them have an impact on the standard of living.]arrow_forward
- Which one of the following is not a determinant of productivity? A greater stock of labor. More human capital per worker. More physical capital per worker. Technological advancement. All of the answers are determinants of productivity.arrow_forwardWhy does an increase in the labor force cause the Market Productivity of Capital to increase?arrow_forwardWhat are the three factors that impact productivity? Provide an example for each factor describing how productivity is impacted.arrow_forward
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