Respuesta :
The productivity (in terms of output per worker) of the economies of Hermes and Gobbledigook can be computed as follows:
1. Hermes
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Gaggles (Gaggles per
of gop) worker)
2014 11 30 3,000 100 (3,000/30)
2034 15 30 3,600 120 (3,600/30)
2. Gobbledigook
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Gaggles (Gaggles per
of gop) worker)
2014 8 30 2,400 80 (2,400/30)
2034 12 30 3,600 120 (3,600/30)
3. The 4-unit change in capital per worker causes the productivity in Hermes to rise by a smaller amount (20%) than the productivity in Gobbledigook (50%). This illustrates the concept of diminishing returns, which makes it easier for countries with low output to catch up to those with higher output.
What is the law of diminishing marginal returns?
The law of diminishing returns states that a developed nation's growth rates tend to slow as the economy matures, enabling developing nations to catch up with the former's growth.
Learn more about productivity and diminishing marginal returns here: https://brainly.com/question/11148440