Question

1.?Ten workers in a factory produce 50 units of output per hour. With new technology the same workers are able to produce 60 units of output per hour. Find the original and new productivity per worker for each hour. Find the rate of increase in productivity. (20 pts)

2.?Estimate the gain in average standard of living for each of the following. (15 pts)

?Real GDP is growing at 3.5% a year while population is growing at 1.5% a year.

?Real GDP is growing at .5% a year while population is shrinking at 0.5% a year.

?Real GDP is growing at 2.5% a year while population is growing at 3.0% a year.

?Real GDP is growing at 2.0% a year while population is growing at 2.0% a year.

?Real GDP is growing at 4.5% a year while population is growing at 4.0% a year.

Answer 1