Multiple Choice
Suppose that the Home country in the twosector
(manufacturing and agriculture) specificfactors model
Has a comparative advantage in manufactured output.
After trade occurs, the return on capital will
____________ the price of the manufactured good.
A) increase faster than
B) increase slower than
C) increase at the same rate as
D) decrease faster than
Correct Answer:
Verified
Correct Answer:
Verified
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