In the Specific­factors Model, Suppose That the Home

question 35

Multiple Choice

In the specific­factors model, suppose that the Home
Country has a comparative advantage in agricultural
Output.What will happen to the amount of capital used
In manufacturing production when trade occurs?

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

---

Definitions:

Subject Matter

The substance or core topic addressed in a document, conversation, or area of study.

Offeree's Counteroffer

A response to an original offer in which the offeree proposes a different agreement, effectively rejecting the initial offer.

Offeror's Revocation

The withdrawal of an offer by the offeror that can occur any time before it is accepted by the offeree, terminating the offer.

Contractual Intent

The clear intention of the parties to a contract to create a legally binding agreement.