a. Suppose the country has a 10-year civil war that destroys
much of its infrastructure.
b. Suppose a small country produces only food and clothing.
A new agricultural technology is then introduced that
doubles the amount of food that can be produced per
year.
c. Suppose a small country produces only food and clothing.
An earthquake destroys many of the clothing factories,
but the ability to produce food is unaffected.
d. The country admits approximately 250 000 immigrants
each year, many of whom join the labour force.
