If Capital Is Specific to Manufacturing and Land Is Specific

question 19

Multiple Choice

If capital is specific to manufacturing and land is specific to agriculture, then migration of labor from low-income to high-income countries will cause the wage to:

• A) rise in the high-income country and the wage to fall in the low-income country.
• B) fall in the high-income country and the wage to rise in the low-income country.
• C) rise in both the high-income and low-income countries.
• D) fall in both the high-income and low-income countries.

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Definitions:

ANOVA Table

A table used to summarize the sources of variability in the data being analyzed in an Analysis of Variance (ANOVA) test.

Regression

An analytical method to determine how a dependent variable correlates with one or more independent variables.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to measure the accuracy of sample-based estimates of a population parameter.

Dependent Variable

The variable in an experiment or study that is expected to change as a result of changes in the independent variable.