Suppose That the Home Country in the Two­sector

question 3

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in agricultural output.Will
Workers be better or worse off following the opening of
Trade with other countries?

• A)Workers will be better off because the nominal wage increases.
• B)Workers will be worse off because the nominal wage decreases.
• C)Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the
• Real wage in terms of the manufactured good falls.
• D)Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the
• Real wage in terms of the manufactured good rises.

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Definitions:

Response To Selection

The process by which certain traits become more or less common in a population due to their impact on the survival and reproduction of their bearers.

Selection Differential

The difference between the average trait of the selected individuals for breeding and the average trait of the general population, indicating the potential for evolutionary change.

Drought

An extended period of below-average precipitation, resulting in prolonged shortages in the water supply, whether atmospheric, surface water, or ground water.

Bt Resistance

The acquired ability of pests to tolerate the Bacillus thuringiensis toxin, often through evolutionary adaptation, rendering Bt crops less effective.