Consider a specific factors model in which capital is specific to manufacturing and land is specific...
Consider a specific factors model in which capital is specific to manufacturing and land is specific to agriculture. If a country has a comparative advantage in manufacturing output, then when it opens to trade owners of land will be ---- off because the marginal product of land will ----.
A better; rise
B better; fall
C worse; rise
D worse; fall
Homework Answers
D worse off; fall
When it opens to trade, returns on capital will rise making the owners of capital better off and returns on land will fall making the owners of land worse off.
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Consider a specific factors model in which capital is specific
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Verizon LTE 33% 10:25 PM Question 2 Trade and factor returns Unanswered Consider a specific factors model in which capital is specific to manufacturing and land is specific to agriculture. If a country has a comparative advantage in manufacturing output, then when it opens to trade owners of land will beoff because the marginal product of land will . A better, rise B better; fall C worse; rise D worse; fall Unanswered
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Verizon LTE 33% 10:25 PM Question 2 Trade and factor returns Unanswered Consider a specific factors model in which capital is specific to manufacturing and land is specific to agriculture. If a country has a comparative advantage in manufacturing output, then when it opens to trade owners of land will beoff because the marginal product of land will . A better, rise B better; fall C worse; rise D worse; fall Unanswered
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