Why does the return to capital change after trade
Occurs?
A)There is more labor used per unit of capital in the manufacturing sector.
B)There is more capital used per unit of labor in the manufacturing sector.
C)There is more labor used per unit of land in the agricultural sector.
D)There is more land used per unit of labor in the agricultural sector.

Question

Quizplus · Accepted Answer

After trade, the manufacturing sector may become more labor-intensive, using more labor per unit of capital, which can affect the return to capital.

Why Does the Return to Capital Change After Trade