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Suppose That the Home Country in the Two­sector

Question 65

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufacturing output.
What will happen to the amount of land used in
Producing agricultural output when trade occurs?


A) It will fall.
B) It will rise.
C) It will not change.
D) It will first fall, then rise.

Correct Answer:

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