Suppose that labor is mobile between sectors but that capital and land are specific. Then labor will tend 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. all of these occur.


Answer: a. it spends a large amount of its income on the imported good.

Economics

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Which of the following involves financial intermediation?

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Economics