Solved

In the "Specific-Factors" Model Where Capital in Each Sector Is

Question 27

Multiple Choice

In the "specific-factors" model where capital in each sector is fixed but labor can move Freely between the two sectors, the opening of the country to trade will increase the real Return to capital in the __________ sector and will increase the real wage of a worker Who __________.


A) export; consumes mostly the import good
B) export; consumes mostly the export good
C) import-competing; consumes mostly the import good
D) import-competing; consumes mostly the export good

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions