Let Us Assume That Cloth-Making (Labor-Intensive) and Farming (Land-Intensive) Are

question 58

Multiple Choice

Let us assume that cloth-making (labor-intensive) and farming (land-intensive) are the only two sectors of production in a country. If this country is labor-abundant, and if trade corresponds to the Heckscher-Ohlin theory, which of the following groups will gain in the short-run, but lose in the long-run, from the opening of trade?

• A)Domestic landowners in the farming sector
• B)Domestic landowners in the cloth-making sector
• C)Foreign landowners in the farming sector
• D)Foreign workers in the cloth-making sector

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Definitions:

Average

A statistical measure that represents the central tendency or typical value of a set of numbers, calculated by dividing the sum of the values by their number.

Oxygen Dissociation Curve

A graph displaying the relationship between the saturation of hemoglobin with oxygen and the partial pressure of oxygen in the blood.

Percent Saturation

A measure of the degree to which a substance is saturated, expressed as a percentage of the maximum possible saturation under given conditions.

Partial Pressure

The pressure exerted by a single gas component in a mixture of gases.