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(Table: an Economy Before and After Trade) Why Does the Return

Question 120

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(Table: An Economy Before and After Trade) Why does the return to capital change after trade occurs? The top part of the table gives manufacturing and agricultural prices, production, resource utilization, and resource payments in autarky (a no-trade situation) . The bottom part of the table provides (some of) the same information after trade occurs. (Table: An Economy Before and After Trade)  Why does the return to capital change after trade occurs? <i>The top part of the table gives manufacturing and agricultural prices, production, resource utilization, and resource payments in autarky (a no-trade situation) . The bottom part of the table provides (some of)  the same information after trade occurs. </i>  A)  There is more labor used in the manufacturing sector. B)  There is more capital used in the manufacturing sector. C)  There is more labor used in the agricultural sector. D)  There is more land used in the agricultural sector.


A) There is more labor used in the manufacturing sector.
B) There is more capital used in the manufacturing sector.
C) There is more labor used in the agricultural sector.
D) There is more land used in the agricultural sector.

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