What does the two-sector (agriculture and manufacturing) specific-factors model allow us to analyze?

Question

Quizplus · Accepted Answer

The two-sector specific-factors model allows for the analysis of returns to all factors of production across both sectors, not just specific factors like capital or land in one sector. It provides insights into how resources are allocated and returns are generated in both agriculture and manufacturing, considering the specific factors tied to each sector.

What Does the Two-Sector (Agriculture and Manufacturing) Specific-Factors Model Allow