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

question 24

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 amount of land used in producing agricultural output when trade occurs?

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

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Definitions:

Breeding Territory

An area defended by an animal or group of animals against others of the same species for the purposes of mating and rearing offspring.

Male Elks

Adult male specimens of the species Cervus canadensis, known for their large antlers, which they shed and regrow each year.

Waggle Dance

A remarkable behavior displayed by honeybees to communicate the location of food sources to other members of their hive.

Chemical Communication

The process by which cells and organisms transfer information using chemical signals, essential for coordinating functions and responses.