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Homework answers / question archive / Consider the economies of Sporon and Gribinez, both of which produce gobs of goo using only tools and workers

Consider the economies of Sporon and Gribinez, both of which produce gobs of goo using only tools and workers

Accounting

Consider the economies of Sporon and Gribinez, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 3 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. Sporon Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2019 6 50 3,000 2049 9 50 3,600 Gribinez Year Physical Capital (Tools per worker) Labor Force (Workers) Output (Gobs of goo) Productivity (Gobs per worker) 2019 9 50 4,000 2049 12 50 4,300 Initially, the number of tools per worker was lower in Sporon than in Gribinez. From 2019 to 2049, capital per worker rises by 3 units in each country. The 3-unit change in capital per worker causes productivity in Sporon to rise by a __________ amount than productivity in Gribinez. This illustrates the concept of __________, which makes it __________ for countries with low output to catch up to those with higher output.

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