Suppose That the Wage Is $20 Per Hour in a Two­sector

question 112

Essay

Suppose that the wage is $20 per hour in a two­sector
(manufacturing and agriculture) specific­factors model.
Currently, the prices of manufactured and agricultural
outputs are $5 and $1, respectively; the marginal
product of labor in the manufactured sector is 6 units
per hour; and the marginal product of labor in the
agricultural sector is 10 units per hour.What will
happen to the distribution of labor between the two
sectors?

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Definitions:

Neural Circuits

Networks of neurons interconnected to process and transmit information through electrical and chemical signals.

Eric Kandel

A neuroscientist known for his research on the physiological basis of memory storage in neurons.

B. F. Skinner

An American psychologist best known for developing the theory of behaviorism and for his work on operant conditioning.

Sigmund Freud

An Austrian neurologist and founder of psychoanalysis, known for his theories on the unconscious mind and psychosexual development.