If Australia Has More Land Per Worker,and Belgium Has More

question 56

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

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Definitions:

Amortized

Gradually reducing a debt through regular payments of both principal and interest.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Amortized

Refers to the process of gradually reducing debt through regular payments that cover both interest and principal over a set period.

Compounded Monthly

This process involves the reinvestment of interest, so each month's interest earning is based on the principal plus the previously earned interest.