Suppose That the Home Country in the Two­sector

question 54

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufacturing output.
What will happen to the return (rental) on land when
Trade occurs?

• A)It will fall.
• B)It will rise.
• C)It will not change.
• D)It will first fall, then rise.

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Definitions:

Experimental Method

A research method involving the manipulation of variables to determine cause-and-effect relationships in controlled conditions.

Cause-And-Effect

The principle that every event (effect) is produced by a cause, showcasing the relationship between actions and their outcomes.

Correlational Method

A research methodology that examines the relationship between two or more variables to determine if a correlation exists.

Experimental Group

The group in an experiment that receives the variable being tested, which is contrasted with a control group that does not receive the experimental treatment.