Suppose that the Home country in the twosector
(manufacturing and agriculture) specificfactors model
Has a comparative advantage in agricultural output.Will
Workers be better or worse off following the opening of
Trade with other countries?
A) Workers will be better off because the nominal wage increases.
B) Workers will be worse off because the nominal wage decreases.
C) Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the
Real wage in terms of the manufactured good falls.
D) Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the
Real wage in terms of the manufactured good rises.
Correct Answer:
Verified
Q29: The absence of trade is known as:
A)alitartky.
B)oligarchy.
C)autarky.
D)embargo.
Q30: Suppose that wages in the agricultural and
Manufacturing
Q31: If the price per bushel of wheat
Q32: As a nation increases its production of
Q33: If the wage rate in the agriculture
Q35: As a nation increases its production of
Q36: Consider the following information for a hypothetical
Economy:
Q37: In the twosector (manufacturing and agriculture)
Specificfactors model,
Q38: If a nation begins to trade, it
Q39: Suppose that the wage is $20 per
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents