In 2008, the country of Cobra Island has an initial level of capital set at 10 units. The population of Cobra Island is unknown, but we do know that it grows each year at some constant rate. The level of total income is 500 cobra dollars. Finally, the total production function of Cobra Island can be described as Y =10*L1/2k1/2 a. What is the initial population of Cobra Island? a. Let the wage of labor is 0.4, and the rental rate of capital is 0.6. The capital to labor ratio after two years (in 2002) is 50 while the amount of workers is 1000. The growth rate of capital is 6,970%. The growth rate of labor is 100%. Find the GDP of Cobra Island.
In 2008, the country of Cobra Island has an initial level of capital set at 10 units. The population of Cobra Island is unknown, but we do know that it grows each year at some constant rate. The level of total income is 500 cobra dollars. Finally, the total production function of Cobra Island can be described as Y =10*L1/2k1/2 a. What is the initial population of Cobra Island? a. Let the wage of labor is 0.4, and the rental rate of capital is 0.6. The capital to labor ratio after two years (in 2002) is 50 while the amount of workers is 1000. The growth rate of capital is 6,970%. The growth rate of labor is 100%. Find the GDP of Cobra Island.
Principles of Economics 2e
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Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
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Problem 4SCQ: Assume there are two countries: South Korea and the United States. South Korea grows at 4 and the...
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![In 2008, the country of Cobra Island has an
initial level of capital set at 10 units. The
population of Cobra Island is unknown, but
we do know that it grows each year at some
constant rate. The level of total income is 500
cobra dollars. Finally, the total production
function of Cobra Island can be described as
Y =10*L1/2k1/2
a. What is the initial population of Cobra Island?
a. Let the wage of labor is 0.4, and the rental
rate of capital is 0.6. The capital to labor ratio
after two years (in 2002) is 50 while the
amount of workers is 1000. The growth rate
of capital is 6,970%. The growth rate of labor
is 100%. Find the GDP of Cobra Island.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F831ec7f5-76a2-429a-919b-3e54260750d0%2F9afb3d93-c7a8-4f82-974c-d02e9cb4e124%2Fhecqxai_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In 2008, the country of Cobra Island has an
initial level of capital set at 10 units. The
population of Cobra Island is unknown, but
we do know that it grows each year at some
constant rate. The level of total income is 500
cobra dollars. Finally, the total production
function of Cobra Island can be described as
Y =10*L1/2k1/2
a. What is the initial population of Cobra Island?
a. Let the wage of labor is 0.4, and the rental
rate of capital is 0.6. The capital to labor ratio
after two years (in 2002) is 50 while the
amount of workers is 1000. The growth rate
of capital is 6,970%. The growth rate of labor
is 100%. Find the GDP of Cobra Island.
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