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Use the following scenario to answer questions 11-13. Consider the hypothetical economies of Greece and Macedonia, both of which produce cases of wine using only
Use the following scenario to answer questions 11-13. Consider the hypothetical economies of Greece and Macedonia, both of which produce cases of wine using only workers and tools. Suppose that, during the course of 50 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. The table below shows each economies' K, L, and Y. Year Physical Capital, K Labor Force, L Output, Y Productivity Greece 2023 18 60 3,600 ? 2073 23 60 4,320 ? Macedonia 2023 15 60 1,800 ? 2073 20 60 3,240 ? 11. Calculate productivity for each year in the table for both economies. (4 points) 12. Initially, the number of tools per worker was higher in Greece than in Macedonia. From 2023 to 2073, capital per worker rises by 5 units in each country. Who experiences a higher increase in productivity due to the additional 5 units of capital? (2 points) 13. What is the name of effect being illustrated? Explain. (2 points)
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