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Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of
Consider the economies of Sporon and Tralfamadore, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 10 years, the level of physical capital per worker rises by 5 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 2016 and 2026. Sporon Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2016 7 30 1,800 |:] 2026 12 3o 2, 160 |:] Tralfa madore Physical Capital Labor Force Output Productivity Yea r (Tools per worker) (Workers) (Gobs of goo) (Gobs per worker) 2015 4 30 900 2026 9 30 1,620 Initially, the number of tools per worker was higher in Sporon than in Tralfamadore. From 2016 to 2026, capital per worker rises by 5 units in each country. The 5unit change in capital per worker causes productivity in Sporon to rise by a V amount than productivity in Tralfamadore. This illustrates the V effect
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