ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a
two year period.
Complete the table by calculating physical capital per worker as well as labor productivity.
Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as
the quantity of goods per hour of labor.
Physical Capital
(Looms)
120
Year
2037
2038
400
Labor Force
(Workers)
60
100
Based on your calculations,
productivity from 2037 to 2038.
Physical Capital per Worker
(Looms)
Labor Hours
Imposing a tax on looms
(Hours)
3,000
3,500
Suppose you're in charge of establishing economic policy for this small island country.
Output
(Tapestries)
21,000
49,000
in physical capital per worker from 2037 to 2038 is associated with
Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply.
Imposing restrictions on foreign ownership of domestic capital
Subsidizing research and development into new weaving technologies
Labor Productivity
(Tapestries per hour of labor)
in labor
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Transcribed Image Text:Consider a hypothetical small island nation in which the only industry is weaving. The following table displays information about the economy over a two year period. Complete the table by calculating physical capital per worker as well as labor productivity. Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor. Physical Capital (Looms) 120 Year 2037 2038 400 Labor Force (Workers) 60 100 Based on your calculations, productivity from 2037 to 2038. Physical Capital per Worker (Looms) Labor Hours Imposing a tax on looms (Hours) 3,000 3,500 Suppose you're in charge of establishing economic policy for this small island country. Output (Tapestries) 21,000 49,000 in physical capital per worker from 2037 to 2038 is associated with Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. Imposing restrictions on foreign ownership of domestic capital Subsidizing research and development into new weaving technologies Labor Productivity (Tapestries per hour of labor) in labor
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