What is the short-run impact of the reduction

Assignment Help Business Economics
Reference no: EM133083197

On 21 August 2021, the Caribbean island country Haiti was hit by a 7.2 magnitude earthquake. The earthquake destroyed houses and factories in the country, effectively reducing the amount of capital in the economy. For this exercise, we will assume that Haiti's economy consists of two sectors, the manufacturing sector which uses labour and capital, and the tourism sector, which uses labour and land. As we focus on the short-run effects, we will use the specific factors model, i.e., capital can only be used in the manufacturing sector, and land can only be used in the tourism sector. Workers can move between the two sectors.

What is the short-run impact of the reduction in Haiti's capital stock on the wages paid to workers in the economy?

What is the impact on the output of the manufacturing and the tourism sector? Illustrate using suitable graphs.

Reference no: EM133083197

Questions Cloud

Explain the analysis of harms : Ronald H. Stein examines excuses counselors may use to justify lying to clients, followed by Bok's analysis of harms brought about by lying.
Derive reaction curves for firm 1 and firm 2 : 1) Consider two firms in Cournot competition. Market demand is given by P=10-2Q. The marginal cost of firm 1 is 2. The marginal cost of firm 2 is 4.
Identify the quarter in which the visits occurred : If the data were entered into MS Excel as shown below using dummy variables to identify the quarter in which the visits occurred:
Why is economics important with reference : Why is economics important with reference to oligopolistic theory
What is the short-run impact of the reduction : What is the short-run impact of the reduction in Haiti's capital stock on the wages paid to workers in the economy?
Theory and paradigm of regional development : Explain the new theory and paradigm of regional development according to Stimson et al. (2009).
Calculate l-k and total cost in the long term : 1) Let the production function be as follow: ( , )=( ^0.5)( ^0.5)a. Assume q=3000, what should be the optimal L and K. What is total cost of production?
Factor driving health care cost growth : Explain how the work from the Dartmouth Atlas project shows that insurance is not the only factor driving health care cost growth.
What happens with price increases and decreases : What happens with price increases and decreases?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd