In the Two-Sector (Manufacturing and Agriculture) Specific-Factors Model, an Increase

Multiple Choice

In the two-sector (manufacturing and agriculture) specific-factors model, an increase in the price of the agricultural good will cause:

A) a decrease in nominal wages in both the agricultural and manufacturing sectors.
B) an increase in nominal wages in both the agricultural and manufacturing sectors.
C) an increase in both nominal and real wages in both the agricultural and manufacturing sectors.
D) an increase in the nominal wage in the agricultural sector and a decrease in nominal wage in the manufacturing sector.