In the short-run specific-factors model, examine the impact on a small country following a natural disaster that
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In the short-run specific-factors model, examine the impact on a small country following a natural disaster that decreases its population. Assume that land is specific to agriculture, and capital is specific to manufacturing, whereas labor is free to move between the two sectors.
a. In a diagram similar to Figure 5-2, determine the impact of the decrease in the workforce on the output of each industry and the equilibrium wage.
b. What happens to the rentals on capital and land?
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WAIGONDA SAAD
Bachelors degree in Biomedical Engineering From Makerere University, A masters degree student at IST Burkinafaso, Diploma in clinical orthopedic medicine from Mulago Paramedical schools, Uganda.
I have been developing capacity of medical equipment users and Engineers and Technicians in greater north and eastern Uganda since 2017 funded by DFD Through THET.
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