A Recent Flood in Queensland Has Destroyed Much of the Farmland

question 166

Essay

A recent flood in Queensland has destroyed much of the farmland used to cultivate bananas and tomatoes that lies in fertile regions near the rivers.Describe the effect of the flood on the marginal productivity of land, labour and capital.How would the flood affect the price of inputs? Provide some examples.

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Definitions:

Zika Virus

A mosquito-borne virus that can cause birth defects and other neurological conditions in infants born to infected mothers.

Free Trade

The absence of tariffs, quotas, and other regulatory barriers to trade between countries, allowing for the unrestricted exchange of goods and services.

Production

The process of creating goods or services by combining various inputs like labor, capital, and natural resources.

Government Subsides

Financial assistance provided by the government to individuals, organizations, or businesses in order to promote certain activities or reduce the costs of those activities.