Question

Year Physical Capital Labor Force Physical Capital per Worker Labor Hours Output Labor Productivity (Looms) (Workers) (Looms) (Hours) (Garments) (Garments per hour of labor) 2027 160 40 - 1,800 14,400 - 2028 180 60 - 3,900 23,400 - Hint: 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. What is the physical capital (looms) per worker in 2027

Answer 1

The physical capital (looms) per worker in 2027 is:

= 4.

Step-by-step explanation:

a) Data and Calculations:

Year Physical Labor Physical Labor Output Labor

Capital Force Capital Hours (Garments) Productivity

(Looms) (Workers) per Worker (Hours) (Garments

(Looms) per hour of

labor)

2027 160 40 4 (160/40) 1,800 14,400 8 garments/hr

2028 180 60 3 (180/60) 3,900 23,400 6 garments/hr

Physical capital per worker (Looms):

2027 = 160 looms/40 workers = 4

2028 = 180 looms/60 workers = 3

Labor productivity (garments per labor hour):

2027 = 14,400 garments/1,800 labor hours = 8 garments per labor hour

2028 = 23,400 garments/3,900 labor hours = 6 garments per labour hour