QUESTION 23 According to the specific-factors theory, resources that are specific to import-competing industries tend to

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Question 23 According To The Specific Factors Theory Resources That Are Specific To Import Competing Industries Tend To 1 (23.48 KiB) Viewed 21 times

QUESTION 23 According to the specific-factors theory, resources that are specific to import-competing industries tend to lose as a result of trade, while resources specific to export industries tend to gain as a result of trade. True False QUESTION 24 In the specific-factors model, an increase in the price of the manufactured good (holding other things constant) will cause: land to move from the manufacturing to the agricultural sector. capital to move from the agricultural to the manufacturing sector. a decrease in nominal wage in the agricultural sector. an increase in nominal wage in the manufacturing sector. QUESTION 25 Suppose that the Home country in the two-sector (computer and steel) specific-factors model has a comparative advantage in steel. Which of the following statements is correct? The Home country will produce more computers compared to no trade and export computers. Workers' real wage after trade will go up, regardless of whether it is measured in terms of steel they can buy or computers they can buy The pre-trade relative price of steel in the Home country is higher than that in Foreign More workers will be employed in the steel sector under trade compared to no trade.