In the specificfactors model, an increase in the price of
The manufactured good will cause:
A)an increase in the wage in the manufacturing sector.
B)capital to move from the agricultural to the manufacturing sector.
C)land to move from the manufacturing to the agricultural sector.
D)a decrease in the wage in the agricultural sector.

Question

In the specific­factors model, an increase in the price of
The manufactured good will cause:
A)an increase in the wage in the manufacturing sector.
B)capital to move from the agricultural to the manufacturing sector.
C)land to move from the manufacturing to the agricultural sector.
D)a decrease in the wage in the agricultural sector.

Quizplus · Accepted Answer

In the specific-factors model, an increase in the price of the manufactured good will lead to an increase in the demand for labor in the manufacturing sector, thereby increasing the wage in that sector.

In the Specific­factors Model, an Increase in the Price of

In the Specificfactors Model, an Increase in the Price of