ECON 101 – The productivity curve of the country Britania

ECON 101 – The productivity curve of the country Britania

Subject: Economics    / General Economics
Question
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The productivity curve of the country Britania is given to be P. Currently the combination of physical capital per worker and real GDP per worker of
Britania is at point A on the productivity curve. There are two other countries in the region, Zstan and Kryptan. These countries are similar to Britania in many aspects including technology, the level of education of the workforce and the supply of natural resources. However, Zstan has a higher savings
rate than Britania while Kryptan has a lower savings rate. Use the double-drop line tool to plot points to show the possible combinations of physical capital per worker and real GDP per worker for Zstan and
Kryptan. Label the combination for Zstan B and the combination for Kryptan C. Coordinates: (moron, 100m) Real GDP per worker — p
r:: A
E B
— c
— Unselected El Snapping
Physical capital per worker 20. Economic growth can be especially fast in countries that are playing catch-up to other countries with higher GDP per capita. As a result many
economists have suggested a general principle known as the convergence hypothesis. It says that differences in real GDP per capita among countries
tend to narrow over time because countries that start with lower real GDP per capita tend to have higher growth rates. Assume that this hypothesis is Start: 1:07 AM IQMOE‘JI’Ii?-eillcu if @m