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

question 122

Multiple Choice

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. Will workers be better or worse off following the opening of trade with other countries?

• A) Workers will be better off because the nominal wage increases.
• B) Workers will be worse off because the nominal wage decreases.
• C) Workers may be better off or worse off because the real wage in terms of the agricultural good rises and the real wage in terms of the manufactured good falls.
• D) Workers may be better off or worse off because the real wage in terms of the agricultural good falls and the real wage in terms of the manufactured good rises.

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Definitions:

Operant Conditioning

An instruction method that manipulates the intensity of behaviors through encouragement or inhibitory measures.

Token Economy

A form of behavior modification that involves rewarding desirable behaviors with tokens that can be exchanged for goods or privileges.

Aversive Conditioning

a process of learning involving an unpleasant or harmful stimulus or reinforcement that results in the reduction of an unwanted behavior.

Alcohol Use Disorder

A disorder in which there's a decreased capability to discontinue or control the intake of alcohol, notwithstanding harmful repercussions on personal relationships, career, or health.