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In the Two-Sector (Manufacturing and Agriculture) Specific-Factors Model, It Is

Question 87

Multiple Choice

In the two-sector (manufacturing and agriculture) specific-factors model, it is assumed that labor:


A) can move freely between the manufacturing and agricultural sectors.
B) can move from the manufacturing to the agriculture sector, but not from the agricultural to the manufacturing sector.
C) cannot move from one sector to the other.
D) cannot move within a sector.

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