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2. Productivity, growth, and the per-worker production function Suppose you were in charge of establishing economic policy for a small island country whose only industry
2. Productivity, growth, and the per-worker production function Suppose you were in charge of establishing economic policy for a small island country whose only industry is trapping. When people aren't trapping, they're enjoying leisure time with their families. Which of the following policies would lead to greater economic growth? Check all that apply. Creating nationalized industries by confiscateing foreign traps Imposing a tax on traps (a form of capital) Offering free public education to Increase the human capital of the country Subsidizing research and development into new trapping technologies What is the best measure of labor productivity in this economy? Animals trapped per trap Animals trapped per year Animals trapped per citizen Animals trapped per hour spent trapping The leader of the country decides how many people should trap animals each day, and how many traps the country should have. Suppose she suggests developing more efficient trapping technology and increasing the training each citizen receives in how to trap animals. The effect of this policy would be the per-worker production function, resulting in in capital per worker and In output per worker
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