Suppose that you are appointed as a chief economist on Mars, Life has recently been found on Mars and the humans have managed to build two economic sectors, mining and agriculture. Assume that mining uses capital, agriculture uses land, and human labor is common to both sectors. Also assume that Mars has a comparative advantage in mining. Answer the following questions using the theoretical models

a. If more people from Earth start migrating to Mars, what will happen to nominal earnings of humans on Mars? Briefly explain your answer. (2pts) b. To increase labor productivity, there is investment in new heavy machinery on Mars from Earth. What happens to the overall marginal product of capital on Mars? Briefly explain your answer.

b.To increase labor productivity, there is investment in new heavy machinery on Mars from Earth. what happens to the overall marginal product of capital on Mars?Briefly explain your answer.

C A virus pandemic emerges on Earth you are required to send back some. capital back to help. As an economist, you're trying to assess the implications of two policies. First, sending back some proportion of heavy machinery back to the Earth. Second, opening up trade between Earth and Mars. What will be the consequences of these two policies (if implemented one after the other in the order mentioned) on real wages of workers on Mars