Suppose That the Home Country in the Two-Sector (Manufacturing and Agriculture)

question 137

Multiple Choice

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufacturing output. What will happen to the relative price of manufactured output when trade occurs?

• A) It will fall.
• B) It will rise.
• C) It will not change.
• D) It will first rise, then fall.

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Definitions:

Cognitive Strategy

Techniques or methods employed to facilitate problem-solving, learning, or memory, enhancing one's ability to process, use, and store information.

Learning Time

The period or duration dedicated to acquiring knowledge, skills, or attitudes through study, experience, or teaching.

Requires Guidance

The need for support or direction in making decisions or performing tasks, often to achieve particular outcomes or navigate complex situations.

Metacognition

The awareness and understanding of one’s own thought processes, involving self-regulation of cognition through planning, monitoring, and evaluation.