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Homework (Ch 12) Consider the hypothetical economies of Hermes and Pelheim, both of which produce crates of copia using only workers and tools. Suppose that,
Homework (Ch 12) Consider the hypothetical economies of Hermes and Pelheim, both of which produce crates of copia using only workers and tools. Suppose that, during the course of 45 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. E Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2022 and 2067. Hermes Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Crates of copia) (Crates per worker) 2022 20 60 3,600 2067 25 60 4,320 Pelheim Physical Capital Labor Force Output Productivity Year (Tools per worker) (Workers) (Crates of copia) (Crates per worker) 2022 17 60 1,800 2067 22 60 3,240 Initially, the number of tools per worker was higher in Hermes than in Pelheim. From 2022 to 2067, capital per worker rises by 5 units in each country The 5-unit change in capital per worker causes productivity in Hermes to rise by a v amount than productivity in Pelheim. This illustrates C- the effect
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