Feenstra and Taylor Describe the "Magnification Effect" of

Multiple Choice

Feenstra and Taylor describe the "magnification effect" of
Trade.This effect describes how:

A) workers tend to complain more about trade than is justified.
B) owners of capital can "magnify" their earnings if they are able to trade.
C) small changes in relative prices as a result of trade lead to larger long­run changes in the real wage or rental of
Factors.
D) unemployment is a big problem among workers but not capital because workers have to move when they are laid
Off)