Economics: Principles & Policy
14th Edition
ISBN: 9781337912679
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning US
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Chapter 23, Problem 1TY
To determine
Calculate the productivity growth.
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Hypothetical data is given for the following countries. Calculate real growth per capita in the following countries:
Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative
sign (-) in front of the number.
a. Democratic Republic of Congo: population growth = 2.8 percent; real output growth=-1.6 percent.
Real growth per capita: %
b. Estonia: population growth-(0.6) percent; real output growth-4.5 percent.
Real growth per capita:[ %
c. India: population growth=1.7 percent; real output growth = 5.9 percent.
Real growth per capita: [ %
d. United States: population growth 0.7 percent; real output growth = 2.8 percent.
Real growth per capita: [
Calculate real growth per capita in the following countries:
Instructions: Enter your responses rounded to one decimal place. If you are entering a negative number, be sure to include a negative
sign (-) in front of the number.
a. Democratic Republic of Congo: population growth=2.6 percent; real output growth = -1.4 percent.
Real growth per capita:%
b. Estonia: population growth=-0.3 percent; real output growth 4.3 percent.
Real growth per capita: %
c. India: population growth = 2.1 percent; real output growth 6.2 percent.
Real growth per capita: %
d. United States: population growth = 0.4 percent; real output growth 2.6 percent.
Real growth per capita:
%
Consider the hypothetical economies of Thalassa and Svarta, both of which produce crates of copia 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.
Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2049.
Year
2019
2049
Year
2019
2049
Physical Capital
(Tools per worker)
14
19
Physical Capital
(Tools per worker)
11
16
Labor Force
(Workers)
60
60
Labor Force
(Workers)
60
60
Thalassa
Output
(Crates of copia)
3,600
4,320
Svarta
Output
(Crates of copia)
1,800
3,240
Productivity
(Crates per worker)
Productivity
(Crates per worker)
Initially, the number of tools per worker was higher in Thalassa than in Svarta. From 2019 to 2049, capital per worker rises by 5 units in each country.
The 5-unit change in capital per worker causes productivity in Thalassa to rise by a…
Chapter 23 Solutions
Economics: Principles & Policy
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