In the specificfactors model, suppose that a country has
A comparative advantage in manufacturing 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 better off because both nominal and real wages increase.
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
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
Q40: When a nation engages in no trade
Q42: When the demand for products competing with
Q43: Workers displaced because of trade:
A)have had larger
Q44: An increase in demand for resources fixed
Q46: If trade causes some workers to be
Q67: The Trade Adjustment Assistance program is:
A) an
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