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:

Guarini

Guarino Guarini was an Italian architect of the Baroque period, known for his intricate designs and the use of light in his religious and secular architectural works.

Bees

Insects belonging to the superfamily Apoidea, pivotal for pollination and known for their role in producing honey and beeswax.

Baldacchino

A ceremonial canopy of stone, metal, or fabric over an altar, throne, or doorway in architecture.

Barberini

An influential Italian noble family that gained prominence in the 17th century, closely associated with the rise of the Baroque art and architecture in Rome.