Question

Macroeconomics:
2. Figure: Technological Progress and Productivity Growth Real GDP per worker (constant dollars) Productivity using 2010 technology $120,000 90,000 В Productivity 60,000 using 1940 technology 30,000 0 10 20 30 40 50 60 70 80 90 100 Physical capital per worker (2000 dollars) Use Figure: Technological Progress and Productivity Growth. If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from: O A to B. O B to C. O C to B. O B to A.

Answer 1

Question 2

It has been stated that there is significant increase in human capital per worker while all other factors remain unchanged.

This implies that physical capital per worker would remain same. However, increase in human capital per worker would indeed increase the productivity leading to increase in real GDP per worker.

Movement from point B to C indicates an increase in real GDP per worker with constant physical capital per worker.

So,

If there is significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from B to C.

Question 9

The given table shows that quarter to quarter productivity growth is negative in all sectors except durable manufacturing.

The quarter to quarter productivity growth rate in durable manufacturing is positive at 0.5%.

So,

Durable manufacturing sector had the largest percent increase in productivity from the same quarter a year ago.