Suppose That the Home Country in the Two­sector

question 115

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufactured output.
What is the effect on the return of land after trade
Occurs?

• A)The return on land increases.
• B)The return on land decreases.
• C)The return on land does not change.
• D)The effect cannot be determined.

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