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

question 79

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 land when trade occurs?

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

---

Definitions:

Scope

The extent or range of view, reach, or application.

Mixed Modelling Strategy

An approach combining various statistical models to analyze data with complex structure, such as fixed and random effects.

Behavioural Generalization

The application or transfer of learned behaviors to different situations outside of the original learning context.

Instructor-Led

Instructor-led training is a traditional educational approach where a teacher or expert guides learners through material, often in a classroom setting.