Suppose That the Home Country in the Two­sector

question 21

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufacturing output.
What will happen to the return (rental) on capital when
Trade occurs?

• A)It will fall.
• B)It will rise.
• C)It will not change.
• D)It will first fall, then rise.

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Definitions:

Sample Size

The number of observations or data points collected in a study or experiment.

Population Standard Deviation

A measure of the dispersion of a set of data from its mean, considering the entire population.

Confidence Level

The probability that the value of a parameter falls within a specified range of values, often used in confidence intervals.

Sample Size

The total count of data points or observations gathered from a population to perform statistics.