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  3. 4. the catch-up effect consider the economies of s

4. The catch-up effect Consider the economies of Sporon and Gobbledigook, both of which produce...

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Accounting

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4. The catch-up effect Consider the economies of Sporon and Gobbledigook, both of which produce glops of gloop using only tools and workers. Suppose that, during the course of 30 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2013 and 2043 Sporon Physical Capital (Tools per worker) Labor Force (Workers) 30 30 Output (Glops of gloop) 3,000 3,600 Productivity (Glops per worker) Year 2013 2043 Gobbledigook Productivity (Glops per worker) Labor Force (Workers) 30 30 Output (Glops of gloop) 2,400 3,600 Physical Capital (Tools per worker) Year 2013 2043 Initially, the number of tools per worker was higher in Sporon than in Gobbledigook. From 2013 to 2043, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Sporon to rise by a amount than productivity in Gobbledigook This illustrates the effect

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