Assume a Country That Produces Only Cloth and Paddy

question 20

Multiple Choice

Assume a country that produces only cloth and paddy. Cloth production requires significant amounts of labor and capital, but relatively less land. Assume that paddy production requires relatively less labor and capital, but relatively large amounts of fertile arable land. If there is an increase in the country's endowments of capital and labor, the Rybczynski theorem would predict that:

• A)the production of both paddy and cloth will increase.
• B)the production of cloth will increase, but that of paddy will remain unchanged.
• C)the production of cloth will increase, but that of paddy will decline.
• D)the production of paddy will increase, but that of cloth will remain unchanged.

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Definitions:

Infertility

The inability to conceive a child after a year or more of regular sexual intercourse without using birth control.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system, specifically CD4 cells, leading to a progressive failure of the immune system if not treated.

Symptoms

Observable signs or reported sensations indicating the presence of a disease or medical condition in the body.

Virus

A microscopic infectious agent that can only replicate inside the living cells of an organism and is responsible for a wide range of diseases.