1. The productivity (in terms of output per worker) in 2016 and 2026 for the economies of Hermes (<u>60 and 72</u>) and Tralfamadore (<u>30 and 54</u>).
2. The 5-unit change in capital per worker causes productivity in <u>Tralfamadore</u> to rise by <u>80%</u> than productivity in <u>Hermes</u> which rose by <u>20%</u>.
3. This illustrates the concept of the <u>catch-up effect</u>, which makes it <u>possible</u> for countries with low output to catch up to those with higher output.
<h3>What is the concept of the catch-up effect?</h3>
The economic concept of the catch-up effect states that developing countries usually develop faster than developed countries, eventually reach the same level of per capita productivity as developed economies.
<h3>Data and Calculations:</h3><h3>Hermes</h3>
Year Physical Capital Labor Force (Workers) Output Productivity
(Tools per worker) (Glops of gloop) (Glops per
worker)
2016 11 30 1,800 60 (1,800/30)
2026 16 30 2,160 72 (2,160/30)
<h3>Tralfamadore</h3>
Year Physical Capital Labor Force (Workers) Output Productivity
(Tools per worker) (Glops of gloop) (Glops per
worker)
2016 8 30 900 30 (900/30)
2026 13 30 1,620 54 (1,620/30)
<h3>Rise in productivity:</h3>
Hermes = 20% (72 - 60/60 x 100)
Tralfamadore = 80% (54 - 30)/30 x 100)
Thus, the productivity (in terms of output per worker) in 2016 and 2026 for the economies of Hermes (<u>60 and 72</u>) and Tralfamadore (<u>30 and 54</u>).
Learn more about the concept of catch-up effect at brainly.com/question/15061995
