Homework Answers
| SPORON | ||||
| Year | Physical capital (Tools per worker) | Labor force (Workers) | Output (Glops of gloop) | Productivity (Glops per worker) |
| 2013 | 11 | 30 | 1,800 | (1800/30)= 60 |
| 2033 | 16 | 30 | 2,160 | (2160/30)= 72 |
| GRIBINEZ | ||||
| Year | Physical capital (Tools per worker) | Labor force(Workers) | Output (Glops of gloop) | Productivity (Glops per worker) |
| 2013 | 8 | 30 | 900 | 30 |
| 2033 | 13 | 30 | 1,620 | 54 |
The number of tools per worker was higher in Sporon than in Gribinez. From 2013 to 2033, capital per worker rises by 5 units in each country . The 5-unit change in capital per worker causes productivity in Sporon to rise by a less amount than productivity in Gribinez. This illustrates the catch-up effect.
Because catch up effect illustrates that when productivity growth is higher in countries with less capital per person helps those countries grow faster . And here , Gribinez starts with less capital and higher productivity when there is change in capital .
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