Initially, the number of tools per worker was higher in hermes than in gobbledigook. from 2012 to 2062, capital per worker rises by 5 units in each country. the 5-unit change in capital per worker causes productivity in hermes to rise by asmaller amount than productivity in gobbledigook. this illustrates the effect.

Options:

Human capital, Natural resources, technology, catch-up

Catch-up effect

Explanation:

In 2012, Hermes had 30 workers and 11 tools per worker, total output was 1,800. Output per worker = 60

In 2062, Hermes also had 30 workers but it has 16 tools per worker, total output was 2,160. Output per worker = 72

In 2012, Gobbledigook had 30 workers and 8 tools per worker, total output was 900. Output per worker = 30

In 2062, Gobbledigook also had 30 workers and 13 tools per worker, total output was 1,620. Output per worker = 54

The workers in Hermes increased their productivity by 20% using 5 more tools, while the workers in Gobbledigook increased their productivity by 80% using 5 more tools.

The catch-up effect states that poorer economies tend to grow more rapidly than wealthier economies, e.g. China consistently grows at around 7% a year, while the US growth rate is between 2-3%. In absolute terms, the US economy is still larger with a much higher GDP per capita, but in the future both economies will have the same GDP per capita.

the answerr would be 1