Suppose That the Home Country in the Two­sector

question 18

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufactured output.
What will happen to the marginal product of capital used
In manufacturing production 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:

Political Power

Refers to the capacity of an individual or group to influence or control the actions, behaviors, and policies of others, often through the possession of authority, force, or resources.

Public Powerlessness

A societal condition in which the general population perceives they have little to no influence over political or economic decisions and policy-making, often leading to disenchantment with governance.

Pluralist Model

A theory of society that emphasizes the role of diverse and competing interest groups in the political and decision-making process.

Broad Social Values

General principles or beliefs widely held by a society, guiding behavior and influencing social norms and policy.