Assume a Nation Where Labor Is Mobile Between Industries but Capital

question 4

Multiple Choice

Assume a nation where labor is mobile between industries but capital is not.The specific-factors model states that trade leads to which of the following?

• A)A reduction in the return to capital used to produce the nation's export commodity
• B)A reduction in the return to capital used in the nation's import-competing industry
• C)An increase in the return to labor used in the production of both imports and exports.
• D)Ambiguous outcomes in the return to all capital.

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Definitions:

Explored

The act of investigating or examining something thoroughly in order to discover more information or understand it better.

Decisions

The act or process of making choices or judgments after considering possible actions and their outcomes.

Personal Fable

A cognitive distortion experienced during adolescence, leading individuals to believe they are unique and invulnerable.

Unprotected Sex

Sexual activity without the use of barrier methods of contraception, which increases the risk of sexually transmitted infections and unintended pregnancies.