Consider the economies of Hermes and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 50 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 2015 and 2065. Hermes Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 11 30 1,800 2065 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per wvorker) 2015 30 900 2065 13 30 1,620

Consider the economies of Hermes and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 50 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 2015 and 2065. Hermes Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 11 30 1,800 2065 16 30 2,160 Tralfamadore Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per wvorker) 2015 30 900 2065 13 30 1,620

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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