In the Specific-Factors Model, Suppose That a Country Has a Comparative

Multiple Choice

In the specific-factors model, suppose that a country has a comparative advantage in manufacturing output. Will landowners be better or worse off following the opening of trade with other countries?

A) They will be better off.
B) They will be worse off.
C) They may be better off or worse off because the real rental on capital in terms of the agricultural good rises and the real rental in terms of the manufactured good falls.
D) They may be better off or worse off because the real rental on capital in terms of the manufactured good rises and the real rental in terms of the agricultural good falls.