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Suppose That Labor Is Mobile Between Sectors but That

Question 66

Multiple Choice

Suppose that labor is mobile between sectors but that
Capital and land are specific.Then labor will tend to
Benefit from trade when:


A) it spends a large amount of its income on the imported good.
B) it spends a large amount of its income on the exported good.
C) wages do not change much in percentage terms.
D) all of these occur.

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