Multiple Choice
Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. After trade occurs, the return on capital will ____________ the price of the manufactured good.
A) increase faster than
B) increase slower than
C) increase at the same rate as
D) decrease faster than
Correct Answer:
Verified
Correct Answer:
Verified
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
Q101: (Table: Sales and Payments) What is the
Q102: Which of the following statements about the
Q104: In an industrialized country, the amount of
Q105: In contrast to the Ricardian model, international
Q106: What U.S. program compensates workers for losses
Q107: In the two-sector (manufacturing and agriculture) specific-factors
Q108: Many examples in this chapter indicate that