If Australia Has More Land Per Worker, and Belgium Has

question 3

Multiple Choice

If Australia has more land per worker, and Belgium has more capital per worker,then if trade began between these two countries

• A) the real income of labor in Australia would decline.
• B) the real income of labor in Belgium would decline.
• C) the real income of landowners in Belgium would decline.
• D) the real income of capital owners in Australia would increase.
• E) the real income of labor in both countries would decline.

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Definitions:

Sale Date

The specific date on which a sale transaction is recognized in the accounting records, marking when the ownership and risks of goods pass from the seller to the buyer.

Equity Method

An accounting technique used to record investments in associate companies, where the investment is initially recognized at cost and subsequently adjusted for the investor’s share of the investee’s profit or loss.

Investment Account

A financial account held at a brokerage or financial institution that contains securities, cash, and other holdings for investment purposes.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and entitling holders to a share of the company's profits via dividends.