Multiple Choice
Suppose that the Home country in the twosector
(manufacturing and agriculture) specificfactors model
Has a comparative advantage in manufactured output.
What is the effect on the return of land after trade
Occurs?
A) The return on land increases.
B) The return on land decreases.
C) The return on land does not change.
D) The effect cannot be determined.
Correct Answer:
Verified
Correct Answer:
Verified
Q76: What is the primary benefit to coffee
Q110: One reason that nations impose agricultural quotas
Q111: In the specificfactors model, suppose that a
Q112: Suppose that the wage is $20 per
Q113: Suppose that the Home country in the
Q114: Suppose that the wage is $20 per
Q116: Because of the "law of diminishing marginal
Q118: Under the 2009 jobs stimulus bill signed
Q119: The argument that trade generates gains for
Q120: Under free trade and comparative advantage, the