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Answer :
The effective number of workers for this economy is 200 and the capital per effective worker is 0.5.
To determine the effective number of workers and capital per effective worker in the given economy, we need to calculate the effective labor and effective capital.
Effective labor = Total labor * Efficiency
Effective labor = 100 units of labor * 2
Effective labor = 200 units
Effective capital = Total capital
Effective capital = 100 units of capital
The effective number of workers is 200, and the capital per effective worker is 0.5 (100 units of capital divided by 200 effective workers).
Therefore:
Effective number of workers = 200
Capital per effective worker = 0.5
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