In the Specific Factors Model,suppose That Home Country Has a Comparative

question 1

Multiple Choice

In the specific factors model,suppose that Home country has a comparative advantage in textile industry.With trade,which of the following statement is true?

• A) the real earnings of capital will not change.
• B) the real earnings of capital will first increase,then decrease eventually.
• C) the real earnings of capital will increase.
• D) the real earnings of capital will decrease.

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Definitions:

Sporophyte

Diploid generation of the alternation-of-generations life cycle of a plant; produces haploid spores that develop into the haploid generation.

Fertilization

The process by which a sperm cell and an egg cell unite, resulting in the formation of a zygote, marking the beginning of a new organism's development.

Sporangia

Structures in fungi, algae, and plants where spores are formed and stored, playing a key role in reproduction and dispersal.

Sporophyte

The diploid multicellular stage in the life cycle of plants and algae, which produces spores through meiosis.