In the Specific­factors Model, Suppose That a Country Has

Multiple Choice

In the specific­factors model, suppose that a country has
A comparative advantage in manufacturing output.Will
Workers be better or worse off following the opening of
Trade with other countries?

A) Workers will be better off because the nominal wage increases.
B) Workers will be better off because both nominal and real wages increase.
C) Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the
Real wage in terms of the manufactured good falls.
D) Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the
Real wage in terms of the manufactured good rises.