Using the specific factors model, assume that strawberry production requires the specific factor of land, tractor production requires the specific factor of capital, and labor is variable
If the United States is capital abundant compared to Mexico, and Mexico is land abundant compared to the United States, then in the short run with trade we would expect A) the income of U.S. land owners to increase.
B) the income of U.S. workers to increase.
C) the income of Mexican workers to increase.
D) the income of Mexican land owners to increase.
D
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A stereo system in Mexico costs 3,200 Mexican pesos. If the dollar price of one Mexican pesos is $0.11, then the U.S. dollar value of the same stereo system is $352
a. True b. False Indicate whether the statement is true or false
An example of a good whose production is counted in this year's GDP is
a. a share of corporate stock b. a used book c. an acre of farm land d. a used car e. a new shirt
Two goods are substitutes of each other if an increase in the price of one good causes the demand for the other good to increase
a. True b. False Indicate whether the statement is true or false
Which one of the following would cause an increase in the supply of planes?
A) a decrease in the demand for planes B) an increase in the price of planes C) an increase in taxes applied to plane producers D) an improvement in the technology used to produce planes