Mudslides+in+Brazil+causes+economic+damage

Article : [|Mudslides in Brazil]

**Summary:** The most recent mudslides in Brazil have caused monumental setbacks for the country’s infrastructure and economy. Not only did the land where Brazil will co-host 2014 world cup and the 2016 Olympics collapse, but farms and houses were also destroyed. This would mean the supply of agricultural goods will fall significantly and will cost the country money and resources to rebuild a place that can help boost the economy of Brazil.

** Vocabulary: ** ** Supply: ** The entire relationship between the quantity supplied of a good or service and its price. ** Supply Curve: ** A graph showing the relationship between the quantity supplied and the price of a good or service, holding everything else constant. ** Demand: ** The entire relationship between the quantity demanded of a good or service and its price. ** Demand Curve: ** A graph showing the relationship between the quantity demanded and the price of a good or service, holding everything else constant
 * Mixed Economy**: An economy where the government allows businesses to what they want and will only step in in times of crisis.
 * Opportunity Cost:** The second best alternative


 * Graph:**


 * Analysis:**
 * The article suggests that the mudslides are very damaging to the economy of Brazil. This is very true, as it not only wipes out the land on which the crops are grown on, but also an entire working force. This would mean a left shift for the supply curve and will drive prices higher if the government does not interfere. Because of a whole region being destroyed, the government will have to spend** $460 million in emergency aid available for the rescue and reconstruction efforts, and would mean less money spent on education, other departments of the government. Because the situation is critical, the money will have to be used. However, think of everything that could be done to boost the economy with $460 million. Think of the countless factories that could be created, the job opening for workers that could only hope for a better living, however, because of horrific mudslides, all these plans will have to sit in the bookshelf and wait another five to ten years.