Consider the economies of Blahnik and Gobbledigook, both of which produce glops of gloop using only tools and workers. Suppose that, during the course of 10 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2019 and 2029. Blahnik
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker)
2019 7 30 1,800
2029 12 30 2,160
Gobbledigook
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Glops of gloop) (Glops per worker)
2019 4 30 900
2029 9 30 1,620
Initially, the number of tools per worker was higher in Blahnik than in Gobbledigook. From 2019 to 2029, capital per worker rises by 5 units in each country. The 5-unit change in capital per worker causes productivity in Blahnik to rise by a amount than productivity in Gobbledigook. This illustrates the concept of , which makes it for countries with low output to catch up to those with higher output..