Multiple Choice
In the two-sector (manufacturing and agriculture) specific-factors model, suppose that the home country has a comparative advantage in manufacturing output. Why does the return to capital change after trade occurs?
A) There is more labor used per unit of capital in the manufacturing sector.
B) There is more capital used per unit of labor in the manufacturing sector.
C) There is more labor used per unit of land in the agricultural sector.
D) There is more land used per unit of labor in the agricultural sector.
Correct Answer:
Verified
Correct Answer:
Verified
Q90: According to the two-sector (manufacturing and agriculture)
Q91: The United States maintains a program to
Q92: Under free trade and comparative advantage, the
Q93: (Table: An Economy Before and After Trade)
Q94: The absence of trade is known as:<br>A)
Q96: Suppose that land is specific to agriculture,
Q97: (Table: Revenues and Costs for Two Industries)
Q98: The two-sector (manufacturing and agriculture) specific-factors model
Q99: As a nation increases its production of
Q100: Consider the following information for a hypothetical