Suppose That Land Is Specific to Agriculture, Capital Is

question 24

Multiple Choice

Suppose that land is specific to agriculture, capital is
Specific to manufacturing, and labor is mobile between
Sectors.According to the specific­factors model, if this
Country begins importing manufactured goods, which
Factor will experience the highest unemployment?

• A)Labor
• B)Capital
• C)Land
• D)No factors will experience unemployment.

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Definitions:

Temporarily Undervalued

A condition in which a stock is selling for less than its perceived or intrinsic value, often due to short-term market fluctuations.

Stock Repurchases

A company's buyback of its own shares from the marketplace, reducing the amount of outstanding stock.

Excess Cash

The amount of cash holdings that exceed the normal operational needs of a company.

Reverse Split

A corporate action which consolidates the number of existing shares of stock into fewer, proportionately more valuable, shares.