Homework (Ch 12) 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 Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Fishing poles) (Workers) (Fishing poles) (Hours) (Fish per hour of lobor) 4,000 36,000 2017 4,200 50,400 Year 2016 300 100 480 120 Based on your calculations, productivity from 2016 to 24 in physical capital per worker from 2016 to 2017 is associated with in labor an increase Suppose you're in charge of a decrease conomic policy for this small island country Homework (Ch 12) 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 Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Fishing poles) (Workers) (Fishing poles) (Hours) (Fish) (Fish per hour of labor) 2016 300 100 4,000 36,000 480 120 4,200 50,400 Year 2017 in physical capital per worker from 2016 to 2017 is associated with in labor Based on your calculations productivity from 2016 to 2012 an increase Suppose you're in charge of establishing economic policy for this small island country a decrease Suppose you're in charge of establishing economic policy for this small island country, Which of the following policies would lead to greater productivity in the fishing industry? Check all that apply. Imposing restrictions on foreign ownership of domestic capital Imposing a tax on fishing poles Subsidizing research and development into new fishing technologies Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts