Question

Suppose that Alpha and Omega have identically sized working-age populations but that total annual hours of work are much greater in Alpha than in Omega. Provide two possible reasons for this difference.

Short answer

The two reasons why the annual working hours are greater in Alpha than in Omega are:

1. The number of capital goods available to the workers of Alpha would be higher than the workers of Omega.
2. Workers of Alpha would be more educated and trained in comparison to workers of Omega.

Step-by-step solution

Step 1. Determination of 'total annual hours of work'

The work hours are determined by the quantity of labor force employed and the average hours they work in a week. The labor force's size depends upon the working-age population. The management governs the average hours of work under an agreement. The total annual work hours are the total hours of work provided to the economy by labor input in a year.

Step 2. Reasons for difference in total hours of work at Alpha and Omega

The difference in the total hours of work arises because of many reasons. Two of them are explained below:

• Availability of capital goods: Many capital goods increase the productivity of workers. It is used to complement the workforce during the production process. Hence, the workers' annual hours of work increase with an increase in capital goods. Greater availability of capital goods to the workers of Alpha can be one reason behind higher total annual hours of work.
• Education and training: Education and training play a vital role in increasing the productivity level of workers. Higher education and training will yield more hours of work to the economy. If the workers of Alpha are more educated and trained than workers of Omega, their total annual hours of work would be higher.