Why Does the Return to Capital Change After Trade

question 38

Multiple Choice

Why does the return to capital change after trade
Occurs?

• A)There is more labor used per unit of capital in the manufacturing sector.
• B)There is more capital used per unit of labor in the manufacturing sector.
• C)There is more labor used per unit of land in the agricultural sector.
• D)There is more land used per unit of labor in the agricultural sector.

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Definitions:

Direct Method

A way to prepare a cash flow statement where actual cash flows from operating activities are listed, rather than being indirectly calculated.