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

question 85

Multiple Choice

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in agricultural output. What will happen to the return (rental) on capital 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:

Franchises

Business model that allows individuals or entities (franchisees) to operate a business under the established brand and operational system of the franchisor in exchange for a fee and ongoing royalties.

Self-Service

refers to a system or process that allows customers to perform services for themselves without direct assistance from staff, commonly seen in retail, banking, and online platforms.

Zipcar

A car-sharing company that allows individuals to rent cars by the hour or day, based on an online reservation system.

Target

A specific group of consumers at which a product or marketing campaign is aimed, identified through certain characteristics like demographics, interests, or behaviors.