If a Country Finds Its Comparative Advantage in Computer Production

question 105

Multiple Choice

If a country finds its comparative advantage in computer production, which is capital intensive, what will happen to the rental rate on capital when trade occurs?

• A) It will decrease.
• B) It will stay the same.
• C) It will increase.
• D) Not enough information is given to answer this question.

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Definitions:

Mural Painting

Artistic works that are painted or applied directly on a large permanent surface, such as a wall or ceiling, often conveying public messages or scenes.

Landscape

A picture showing natural scenery, without narrative content.

Groupings

The arrangement or organization of objects, figures, or elements in art and design to create a coherent or themed composition.

Terracotta

is a type of earthenware clay used in pottery, sculptures, and building construction, notable for its reddish-brown color when unglazed and fired.