Suppose That the Home Country in the Two­sector

question 113

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufactured output.
Will workers be better or worse off following the opening
Of trade with other countries?

• A)Workers will be better off because the nominal wage increases.
• B)Workers will be worse off because the nominal wage decreases.
• C)Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the
• Real wage in terms of the manufactured good falls.
• D)Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the
• Real wage in terms of the manufactured good rises.

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Definitions:

Equality of Condition

The idea that individuals must have the same starting conditions for opportunities, aiming at reducing socioeconomic disparities.

Leveling of Income

The process or policy aimed at reducing income inequality among a population, often through taxation and social welfare programs.

Public Opinion

The aggregate of individual attitudes, beliefs, or views held by the adult population concerning political issues, leaders, institutions, and events.

Gender Gap

The difference in opinions or behaviors between genders, especially as it pertains to political views, voting patterns, and social attitudes.