Question

annual growth rate during this period. For example, real income per person in Zambia was $1,412 in 1960, and it actually declined to $1,309 by 2010. Zambia's average annual growth rate during this period was -0.15%, and it was the poorest economy in the table in the year 2010.

The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.

Economy	Real Income per Person in 1960	Real Income per Person in 2010	Annual Growth Rate
	(Dollars)	(Dollars)	(Percent)
Austria	9,773	35,031	2.59
Venezuela	7,307	9,762	0.58
Botswana	468	9,515	6.21
Malaysia	1,624	11,863	4.06
Honduras	1,932	3,146	0.98
Zambia	1,412	1,309	-0.15

Indicate which economy satisfies each of the following statements.

Statement	Austria	Botswana	Honduras	Malaysia	Venezuela	Zambia
This economy had the highest level of real income per person in the year 2010.
This economy experienced the fastest rate of growth in real income per person from 1960 to 2010.

Consider the following list of four economies. Which economy began with a level of real income per person in 1960 that was well below that of Venezuela and grew fast enough to catch up with and surpass Venezuela's real income per person by 2010?

Botswana

Honduras

Malaysia

Zambia

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Consider a simple economy whose only industry is weaving. In this industry, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of garments one weaver makes per hour.

In the following table, match each example to the productivity determinant it represents.

Consider a small island country whose only industry is weaving. The following table shows information about the small economy in two different years.

Complete the table by calculating physical capital per worker as well as labor productivity.

Hint: Recall that productivity is defined as the amount of goods and services a worker can produce per hour. In this problem, measure productivity as the quantity of goods per hour of labor.

Year	Physical Capital	Labor Force	Physical Capital per Worker	Labor Hours	Output	Labor Productivity
	(Looms)	(Workers)	(Looms)	(Hours)	(Garments)	(Garments per hour of labor)
2028	120	60		3,300	23,100
2029	400	100		3,500	49,000

Based on your calculations,   in physical capital per worker from 2028 to 2029 is associated with   in labor productivity from 2028 to 2029.

Suppose you're in charge of establishing economic policy for this small island country.

Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply.

Imposing a tax on looms

Sharply increasing the interest rate on student loans to people pursuing advanced degrees in weaving

Imposing restrictions on foreign ownership of domestic capital

Offering free public education to every worker in the country

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Examples	Human Capital per Worker	Natural Resources per Worker	Physical Capital per Worker	Technological Knowledge
The looms used to weave the textiles
A unique fertilizer that can be spread on the grasslands to induce thicker coats on the sheep
The accumulated weaving experience of the workforce
The grasslands supporting the sheep whose wool is used for weaving

Answer 1

1)

2)

3)

Please give thumbs up, solved all parts.