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CENGAGE |MINDTAP Chapter 12 Homework Consider the hypothetical economies of Thalassa and Vanaheim, both of which produce cases of argo using only workers and tools.
CENGAGE |MINDTAP Chapter 12 Homework Consider the hypothetical economies of Thalassa and Vanaheim, both of which produce cases of argo using only workers and tools. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 3 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2018 and 2048. Thalassa Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Cases of argo) (Cases per worker) 2018 11 80 8,000 2048 14 80 9,600 Vanaheim Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Cases of argo) (Cases per worker) 2018 14 80 9,600 2048 17 80 10,400 Initially, the number of tools per worker was lower in Thalassa than in Vanaheim. From 2018 to 2048, capital per worker rises by 3 units in each country. The 3-unit change in capital per worker causes productivity in Thalassa to rise by a amount than productivity in Vanaheim. This illustrates the effect
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