only need b, c, d completed.

thankyou!

3 Consider a small open economy that produces two goods agriculture and manufacture - using three factors: labour, capital, and land. Manufacturing goods are produced using a mix of labour (L) and capital (K) with technology QM=FM(L,K). Agricultural goods are produced vsing labour and land (T) using technology QA=FA(L,T). The supply of each factor is fixed (at L,K, and T, respectively); all markets are perfectly competitive; and output prices (PM and PA) are taken as given in world markets. a Illustrate the equilibrium wage rate and the distribution of labour across industries in a clearly labelled graph in (L,W) space. Clearly state the assumptions you are making. (5 points) b The government is considering acquiring an uninhabited and undeveloped parcel of land from an adjacent country. Evaluate the impacts of the proposed policy on nominal wages and on the distribution of labour across industries. Illustrate the impact of the policy in your graph from part (a) and comment on your results. Assume the sale of land in the foreign country has no impact on its production, and hence that world prices are unchanged. (5 points) c What is the impact of the policy on the welfare of workers, capitalists, and land owners? Use a formal argument and explain the intuition. (5 points) d Should the government acquire the additional land? Ignore the financial cost of acquiring the land. Explain. ( 5 points)