Exam 3: Gains and Losses From Trade in the Specific-Factors Model

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  (Table: Sales and Payments) Suppose that the price of The agricultural good increases with no change in the Price of the manufactured good.Which of the following Resources will show the MOST gain? (Table: Sales and Payments) Suppose that the price of The agricultural good increases with no change in the Price of the manufactured good.Which of the following Resources will show the MOST gain?

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Suppose that the Home country in the two­sector (manufacturing and agriculture) specific­factors model Has a comparative advantage in manufactured output. Which statement below best describes changes in Returns on capital and land after trade occurs?

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