In the Specific­factors Model, Suppose That the Home

question 35

Multiple Choice

In the specific­factors model, suppose that the Home
Country has a comparative advantage in agricultural
Output.What will happen to the amount 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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