In the Specific-Factors Model, Suppose That a Country Has a Comparative

question 62

Multiple Choice

In the specific-factors model, suppose that a country has a comparative advantage in manufacturing output. Will landowners be better or worse off following the opening of trade with other countries?

• A) They will be better off.
• B) They will be worse off.
• C) They may be better off or worse off because the real rental on capital in terms of the agricultural good rises and the real rental in terms of the manufactured good falls.
• D) They may be better off or worse off because the real rental on capital in terms of the manufactured good rises and the real rental in terms of the agricultural good falls.

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Definitions:

Suprachiasmatic Nucleus

A small region of the brain in the hypothalamus, responsible for controlling circadian rhythms.

Optic Chiasm

Junction of the optic nerves, one from each eye, at which the axons from the nasal halves of the retinas cross to the brain’s opposite side.

Hypothalamus

A region of the brain that regulates vital bodily functions, including temperature, hunger, thirst, fatigue, sleep, and circadian rhythms.