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:

Morbid Obesity

A condition characterized by an excessive amount of body fat, often defined as having a BMI of 40 or higher.

Obesity

A medical condition characterized by an excessive accumulation of body fat, often defined by a body mass index (BMI) of 30 or higher.

Overweight

A condition characterized by having more body weight than is considered normal or healthy for a certain height, often due to excess body fat.

Diabetic Neuropathy

A type of nerve damage that can occur with diabetes, affecting primarily the legs and feet.