Suppose That Labor Is Mobile Between Sectors but That

question 66

Multiple Choice

Suppose that labor is mobile between sectors but that
Capital and land are specific.Then labor will tend to
Benefit from trade when:

• A)it spends a large amount of its income on the imported good.
• B)it spends a large amount of its income on the exported good.
• C)wages do not change much in percentage terms.
• D)all of these occur.

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Definitions:

Government Bonds

Debt securities issued by a government to support government spending, offering investors a relatively safe investment option.

Private Company

A business entity owned by private individuals or corporations, with shares that are not traded publicly on stock exchanges.

Closing Date

The specific date agreed upon by parties involved in a transaction (such as the sale of property) when the transaction is finalized and legal documents are signed.

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