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As Relative Prices in Various Industries Change Due to

Question 8

Multiple Choice

As relative prices in various industries change due to
Trade, the marginal product of the mobile resources
Used in the expanding industry __________, and the
Marginal product of the mobile resources used in the
Contracting industry __________.


A) rises; falls
B) falls; rises
C) remains the same; remains the same
D) changes by exactly the same percentage; changes by exactly the same percentage

Correct Answer:

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