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9 votes
What impact can natural disasters have on production in an economy? Give two
examples.

User Saddy
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1 Answer

22 votes
22 votes

Answer:

Natural disasters such as earthquakes, floods, typhoons, and hurricanes inflict serious damage and so seem to be bad for the economy. For firms, natural disasters destroy tangible assets such as buildings and equipment – as well as human capital – and thereby deteriorate their production capacity.

User Gnarbarian
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