Econ 1102 Recitation 4 Gina Pieters Recitation 4 A Production Possibilities Frontier PPF B Productivity and Growth C Calculating Growth Statistics A Production Possibilities Frontier PPF Goods Plan A Plan B Plan C Plan D Plan E Robots T Shirts 0 15 2 14 4 10 6 5 8 0 Graph and show locations the economy is producing at if production is efficient inefficient Show economic growth B Productivity and Growth Suppose that Econland has 50 machines in 2007 and that there are 1000 workers in the economy Each worker has 100 labor hours in a year 2007 RGDP is 1000 a What is the physical capital per worker b What is the labor productivity C Calculating Growth Statistics In 2007 Econland has an RGDP of 1000 and a population of 2000 In 2008 Econland has an RGDP of 1050 while population is 2020 and Labor force workers is 1010 a What is the growth rate of RGDP b What is the RGDP per cap in 2007 c What is the RGDP per cap in 2008 d What is RGDP per worker in 2008 e What is the growth rate of RGDP per cap f Using growth rate from d what will be the size of RGDP per cap in 2017 Page 1 of 2 Econ 1102 Recitation 4 Gina Pieters Practice Problems 1 Calculating Growth Statistics In 2005 Econland has an RGDP of 50 thousand a population of 25 thousand and a labor force of 20 thousand In 2006 Econland has an RGDP of 60 thousand and a population of 30 thousand a What is the growth rate of RGDP b What is the growth rate of RGDP per capita c What is RGDP per worker in 2005 d Approximately how much RGDP will Econland have in 2025 e Approximately how much RGDP per cap will Econland have in 2025 2 Productivity and Growth In 2005 Econland has an RGDP of 50 thousand a population of 25 thousand and a labor force of 20 thousand It has 50 thousand machines Each worker works 2000 hours a year a What is the physical capital per worker b What is the labor productivity 3 PPF Goods Plan A Plan B Plan C Plan D Plan E Robots T Shirts 0 15 1 14 2 10 3 5 4 0 a Graph the PPF using the information above b On your PPF graph indicate efficient production inefficient production economic growth and infeasible production Page 2 of 2
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