The gains from expanding trade are more important to the low-income economies in the world than to the high-income economies

Suppose an economy has an increase in labor input of 60 percent, while output has increased by 100 percent. Assuming no change in total factor productivity, calculate the percentage increase in the capital input

(Use the Cobb-Douglas production function Y = A .)

Suppose you were given a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose the equilibrium rate of interest is 5 percent. What is the present value of that gold mine?

a. $20,000 b. $5,000 c. $50,000 d. $500,000 e. $10,000