Suppose That Labor Is Mobile Between Sectors but That Capital

Multiple Choice

Suppose that labor is mobile between sectors but that capital and land are specific. Then labor is more likely to benefit from trade when:

A) it spends a large amount of its income on the imported good.
B) it spends a large amount of its income on the exported good.
C) wages do not change much in percentage terms.
D) wages increase only in industries competing with imports.