Short-answer questions Note: You should show your step-by-step answers to the questions below. If only final answers were provided, no marks will be counted for the question.

Question 3 (11 points). Suppose an economy has the following Cobb-Douglas production function Y = AK\" L\" where a = 0.3, A represents the level of technology, K = the level capital and L = the level of labour. What are the shares of total income for the owners of capital (K) and the owners of labour (L)? What is the economic prot in the economy