Top Posters
Since Sunday
g
3
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
coleshear coleshear
wrote...
Go to Answer
Posts: 136
Rep: 0 0
A year ago
Scenario: Tree Country has a population of 18,000 people, of whom two-thirds are part of the workforce. The country's only asset is wood, where K = 18,000. The country only produces wooden furniture. In the figure below, Y stands for GDP, and H equals efficiency units of labor.




Refer to the scenario above. Assume Tree Country's economy has constant returns to scale. If its population doubles and all other inputs remain the same, how would GDP change?

▸ GDP would increase by exactly 50 percent.

▸ GDP would stay the same.

▸ GDP would increase.

▸ GDP would decrease by exactly 50 percent.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
Read 25 times
1 Reply
Replies
Answer verified by a subject expert
shalashashalasha
wrote...
#1
Posts: 117
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

coleshear Author
wrote...

A year ago
Smart ... Thanks!
bkrandy
wrote...

Yesterday
Thanks
kh540941
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1140 People Browsing
 137 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 709
  
 295
  
 249
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?