This is my son who is in 10th grade homework assignment. I want to be able to help and not look like a dope! I really have no clue!
1. Why do economists consider growth in the average labor productivity to be the key factor in determining long run living standards?
2. And, Let's say that you have hired five workers to work in your Accounting department. Workers without access to computers have zero productivity in accounting. How would you assign computers to workers if you didn't have enough for all five? Discuss the relationship between the availability of labor capital and average labor productivity, and also the concept of diminishing returns to capital.
3.Here are data for Germany and Japan on the ratio of employment to population in 1979 and 2003
1979 for Germany is 0.33
2008 for Germany is 0.49
For Japan
1979 is 0.48
2008 is 0.51
How would I find the average labor productivity for each country in 1979 and in 2008. Between 1979 and 2008, and how would I compute the increase in GDP per capita, in labor productivity and in employment relative to population for each country? This stuff is not easy!!!!!!
1. Economists consider growth in average labor productivity to be the key factor in determining long run living standards because it directly affects the economy's ability to produce goods and services efficiently. When labor productivity increases, it means that workers are able to produce more output in the same amount of time. This leads to higher levels of economic output, higher incomes for workers, and ultimately higher living standards for the population.
2. If you have limited computers for your Accounting department, you would need to prioritize and assign them strategically based on the productivity of each worker. Workers without access to computers have zero productivity in accounting, so it is crucial to ensure that the workers who make the best use of computers receive them. To determine this, you can assess the relationship between labor productivity and the availability of capital.
The availability of labor capital (in this case, computers) can have a significant impact on average labor productivity. When workers have access to computers, it increases their productivity by enabling them to process accounting data more efficiently. Therefore, if you have limited computers, it is advisable to allocate them to workers who will benefit the most from utilizing them. This way, you maximize the output and productivity of your accounting department.
However, it is important to note the concept of diminishing returns to capital. This concept suggests that as you increase the amount of capital (computers) while holding other factors constant (e.g., the number of workers), eventually the additional units of capital will lead to diminishing increases in productivity. In other words, the first few computers may have a significant impact on productivity, but as you add more computers, the marginal increase in productivity diminishes. This is something to consider when assigning computers to workers.
3. To find the average labor productivity for each country in 1979 and 2008, you need to calculate the Gross Domestic Product (GDP) divided by the number of workers. The formula is:
Average Labor Productivity = GDP / Number of Workers
For each country, you would need to gather the GDP data for 1979 and 2008 and the corresponding number of workers. Once you have this information, you can apply the formula to compute the average labor productivity for each year.
To compute the increase in GDP per capita, labor productivity, and employment relative to population, you would compare the values between 1979 and 2008. The formulas for each are as follows:
Increase in GDP per capita = (GDP in 2008 - GDP in 1979) / Population in 2008 - Population in 1979
Increase in Labor Productivity = Average Labor Productivity in 2008 - Average Labor Productivity in 1979
Increase in Employment Relative to Population = Employment to Population Ratio in 2008 - Employment to Population Ratio in 1979
Let me know if you need further assistance with any of these steps!
1. Economists consider growth in average labor productivity to be a key factor in determining long-run living standards because it directly affects how much output can be produced per hour of work. When labor productivity increases, it means that workers are able to produce more goods or services in the same amount of time. This leads to higher economic output and, in turn, higher living standards.
To understand this concept, you can start by researching the relationship between labor productivity and economic growth. Look for sources that explain how increases in productivity lead to higher incomes, technological advancements, and improvements in standard of living. You can also explore the concept of total factor productivity (TFP), which takes into account not just labor, but also other factors of production like capital and technology.
2. If you have five workers in your Accounting department but not enough computers for all of them, you would need to prioritize and assign the computers based on the level of productivity each worker can achieve with one. Given that workers without access to computers have zero productivity in accounting, it becomes crucial to provide the available computers to those workers who can make the most productive use of them.
To understand the relationship between labor capital (computers) and average labor productivity, you should research how capital inputs, such as computers, can enhance a worker's ability to produce output efficiently. Look for resources that explain how the availability of capital affects productivity levels and the overall efficiency of production processes. Additionally, study the concept of diminishing returns to capital, which states that as you increase the amount of capital available per worker, the additional increase in output diminishes.
3. To find the average labor productivity for each country in 1979 and 2008, you would need data on the total GDP (Gross Domestic Product) and the number of employed individuals for each corresponding year. Average labor productivity is calculated by dividing the GDP by the number of employed individuals.
Here's how you can compute the increase in GDP per capita, labor productivity, and employment relative to population for each country between 1979 and 2008:
1. Calculate the GDP per capita: Divide the total GDP by the total population for each year. This will give you the GDP per capita.
2. Calculate the average labor productivity: Divide the total GDP by the number of employed individuals for each year. This will give you the average labor productivity.
3. Compute the increase in GDP per capita: Subtract the GDP per capita in 1979 from the GDP per capita in 2008. This will give you the increase in GDP per capita over the period.
4. Compute the increase in labor productivity: Subtract the average labor productivity in 1979 from the average labor productivity in 2008. This will give you the increase in labor productivity over the period.
5. Compute the increase in employment relative to population: Subtract the ratio of employment to population in 1979 from the ratio of employment to population in 2008. This will give you the increase in employment relative to population over the period.
You can use this formula for both Germany and Japan to compare their respective changes in GDP per capita, labor productivity, and employment over time.
Remember, understanding these concepts may require additional research and reading to gain a deeper understanding. Good luck with your assignment!