Question
(5 marks) Fishyland is a small country that focuses on her fishing industry. She has a production function of Y = 60L0.4K0.6. where L is
(5 marks) Fishyland is a small country that focuses on her fishing industry. She has a production function of Y = 60L0.4K0.6. where L is labour and
K is capital.
Calculate the real wage rate of labor. (2 marks)
Suppose the World Bank grants more fishing tools to Fishyland.
From the answer in (a), will a typical labor in Fishyland benefit from this? Explain. (3 marks)
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The Economic Consequences Of The Peace
Authors: John Maynard Keynes
1st Edition
1420905856, 9781420905854
