Question

3. Productivity and growth policies Consider a small island country whose only industry is fishing. The following table shows information about the small economy in two different years. 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 per Worker (Fishing poles) Labor Force (Workers) 20 Labor Productivity (Fish per hour of labor) Year 2020 2021 Physical Capital (Fishing poles) 40 180 Labor Hours (Hours) 1,000 2,100 Output (Fish) 5,000 15,750 60 in physical capital per worker from 2020 to 2021 is associated with in labor Based on your calculations, productivity from 2020 to 2021. Suppose you're in charge of establishing economic policy for this small island country.

Answer 1

Physical for Calontal forca (Fishing Poles) (workers) 40 20 8 6 Physical cafel Per worker (fishing Pole) 2 3 yer 2020 2021 Laber Huer hours) lovo 2100 Laber to detaily Productivity (fish per hour aflater). output (fish) 5000 15150 5 2020 7.5 OIL Physical capital per worker = Physical capital Labor force. Laber Productivity ht out but turs Laber Hours. Board on you I calculation, increaus in Physical capital por worker from 2c2. to 2011 is addecided with increase in laber productivity from 2000 to 202). following policies would lead to greater productivity in the fishing industry - Encerraging Saving by allowing workers to set aside a portion of their earning in tox free retirement accounts Sa budizing research and development isto new frishing technologies - offering free public education to every worker in the country. Alnurri option (A), (B), (D)