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Practical Application: This is a question about optimal population. The table below shows the relationship between the size of a country's labour force and the
Practical Application: This is a question about optimal population. The table below shows the relationship between the size of a country's labour force and the level of GNI, given the initial stock of capital, natural reur To keep things simple, assume that the Labour Force is equal to one third of the population. a) Given that assumption, fill in the table below. (6 Marks) b) On the figure below, draw in the curve (based on the above table) that shows the relationship between population size and per capita income. Label this curve P. Label the optimum population POP and the corresponding level of per capita income PCI* (6 Marks) d) For each of the following economic changes, what is the effect, all else being equal, on optimum population and the level of per capita income? You need only state whether the effect is positive or negative. (8 Marks)
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