Suppose That Labor Is Mobile Between Sectors but That Capital

question 57

Multiple Choice

Suppose that labor is mobile between sectors but that capital and land are specific. Then labor is more likely to benefit from trade when:

• A) it spends a large amount of its income on the imported good.
• B) it spends a large amount of its income on the exported good.
• C) wages do not change much in percentage terms.
• D) wages increase only in industries competing with imports.

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Definitions:

McClelland's Model

A psychological theory which states that the needs for achievement, power, and affiliation significantly influence human motivation and behavior.

Achievement Motive

refers to an individual's persistent effort and determination to reach goals and excel in tasks.

Standards Of Excellence

Criteria or benchmarks used to measure the quality or performance level of a product, service, or activity.

Self-Actualization

The realization or fulfillment of one's talents and potentials, considered as a drive or need present in everyone.