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

question 55

Multiple Choice

Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. What will happen to the marginal product of capital used in manufacturing production 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:

Hypnotic Suggestion

A technique used in hypnotherapy where a therapist suggests certain perceptions, feelings, thoughts, or behaviors to occur either during hypnosis or afterwards.

Memory Construction

The process of forming new memories, which includes the encoding, storage, and retrieval of information.

Proactive Interference

The phenomenon where older memories hinder the recall of newer memories.

Anterograde Amnesia

The loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or complete inability to recall the recent past.