In the Two-Sector (Manufacturing and Agriculture) Specific-Factors Model, the Slope

question 107

Multiple Choice

In the two-sector (manufacturing and agriculture) specific-factors model, the slope of the production possibilities curve equals:

• A) the ratio of marginal products of capital in the two sectors.
• B) the ratio of marginal products of labor utilized in the two sectors.
• C) the ratio of outputs produced in the two sectors.
• D) the ratio of land and capital utilized in the two sectors.

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