Suppose That Labor Is Mobile Between Sectors but That Capital

question 57

Multiple Choice

Suppose that labor is mobile between sectors but that capital and land are specific. Then labor is more likely to benefit from trade when:

• A) it spends a large amount of its income on the imported good.
• B) it spends a large amount of its income on the exported good.
• C) wages do not change much in percentage terms.
• D) wages increase only in industries competing with imports.

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Definitions:

Haircut Market

Refers to the market for hair styling and cutting services; often used to exemplify basic economic principles like supply, demand, and market equilibrium in a tangible context.

Labor-Market Discrimination

The unequal treatment of job applicants or workers based on race, gender, age, or other irrelevant characteristics which affects their opportunities and wages.

Wage Increase

An increase in the rate of pay for workers, which can occur due to economic growth, inflation, or increased demand for labor.

Monthly Workshops

Regularly scheduled events that focus on teaching or exploring specific topics or skills in depth.