As a nation increases its production of exports, demand
For specific or fixed factors (such as capital and land)
Used in the exporting sector:
A)will rise.
B)will fall.
C)will remain the same.
D)will decrease but only slightly.

Question

Quizplus · Accepted Answer

As the nation increases its production of exports, the demand for specific or fixed factors used in the exporting sector will rise. This is because the exporting sector will require more capital and land to increase its production, which will lead to an increase in demand for these factors.

As a Nation Increases Its Production of Exports, Demand