Business, 05.04.2021 23:40, estebanmff
Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop 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 2021 and 2071.
Hermes
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker)
2021 11 30 1,800
2071 16 30 2,160
Gribinez
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker)
2021 8 30 900
2071 13 30 1620
Initially, the number of tools per worker was higher in Hermes than in Gribinez. From 2021 to 2071, 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 amount than productivity in Gribinez. This illustrates the effect.
Answers: 2
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Consider the economies of Hermes and Gribinez, both of which produce gaggles of gop using only tools...
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