Why resources might not be mobile among sectors


Problem

Structuralist economists maintain that resources are often not mobile among sectors of an economy. Consequently, PPFs tend to be nearly rectangular, and switching effects small. Can you think of any reasons why resources might not be mobile among sectors? Use a diagram like those presented in this chapter to show the ineffectiveness of switching policies in this case.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why resources might not be mobile among sectors
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