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The Two-Sector (Manufacturing and Agriculture) Specific-Factors Model Assumes

Question 98

Multiple Choice

The two-sector (manufacturing and agriculture) specific-factors model assumes:


A) that there are increasing returns to labor.
B) that there are diminishing returns to labor.
C) that there are diminishing returns to capital in the agricultural sector.
D) that there are diminishing returns to land in the manufacturing sector.

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