Multiple Choice
Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. What is the change to the return on land after trade occurs?
A) The return on land increases.
B) The return on land decreases.
C) The return on land does not change.
D) The effect cannot be determined.
Correct Answer:
Verified
Correct Answer:
Verified
Q81: A change in the relative price of
Q82: In the two-sector (manufacturing and agriculture) specific-factors
Q83: Suppose that land is specific to agriculture,
Q84: (Table: An Economy Before and After Trade)
Q85: Suppose that the home country in the
Q87: In the two-sector (manufacturing and agriculture) specific-factors
Q88: (Table: Revenues and Costs for Two Industries)
Q89: Suppose that a country has a comparative
Q90: According to the two-sector (manufacturing and agriculture)
Q91: The United States maintains a program to