Multiple Choice
Suppose that the Home country in the twosector
(manufacturing and agriculture) specificfactors model
Has a comparative advantage in agricultural output.
What will happen to the return (rental) on capital 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
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