Multiple Choice
Suppose that the Home country in the twosector
(manufacturing and agriculture) specificfactors model
Has a comparative advantage in manufacturing output.
What will happen to the return (rental) on land when
Trade occurs?
A) It will fall.
B) It will rise.
C) It will not change.
D) It will first fall, then rise.
Correct Answer:
Verified
Correct Answer:
Verified
Q49: In an industrialized country, the amount of
Q50: If we assume only one factor (labor),
Q51: In contrast to the Ricardian model, international
Q52: Which of the following is NOT a
Q53: The idea of fair-trade coffee addresses the
Q55: According to the specificfactor model, will nominal
Q57: Many examples in this chapter indicate that
Q58: If a nation begins to trade, it
Q59: Why must we know the composition of
Q134: Suppose that land is specific to corn,