Suppose Portugal Has 700 Workers and 26,000 Units of

question 132

Multiple Choice

Suppose Portugal has 700 workers and 26,000 units of
Capital, and France has 18,000 workers and 700 units of
Capital.Technology is identical in both countries.Assume
That wine is the capital­intensive good and cloth is the
Labor­intensive good.Which of the following statements is
CORRECT if the nations start trading with each other?

• A)Wages will increase in Portugal.
• B)Rental rates in France will increase.
• C)Wages in France will decrease.
• D)Rental rates in Portugal will increase.

---

Definitions:

Dung Beetles

Beetles that feed on feces, playing important ecological roles such as nutrient recycling and soil aeration.

Keystone Species

Species that have a disproportionately large impact on their environment relative to their abundance, crucial for ecosystem structure and function.

Indicator

A measurable variable used to demonstrate the progress toward achieving a specified goal or to assess the condition of a particular aspect of an ecosystem or economy.