WorksheetsSISU 300 Session 05
Total questions: 3
Worksheet time: 2mins
Who benefits from trade liberalization when rent is calculated in NOMINAL terms?
The owners of the specific factor for which the country HAS the comparative advantage.
The owners of the specific factor for which the country HAS the comparative advantage.
The owners of BOTH specific factors.
The owners of NEITHER specific factor.
If you add one worker to the marginal (i.e., last) acre in production,
the marginal product of labor (MPL) goes DOWN, and the marginal product of land (MPT) goes DOWN.
the marginal product of labor (MPL) goes DOWN, but the marginal product of land (MPT) goes UP.
the marginal product of labor (MPL) goes UP, but the marginal product of land (MPT) goes DOWN.
the marginal product of labor (MPL) goes UP, and the marginal product of land (MPT) goes UP.
Who benefits from trade liberalization when rent is calculated in REAL terms?
The owners of the specific factor for which the country HAS the comparative advantage.
The owners of the specific factor for which the country does NOT have the comparative advantage.
The owners of BOTH specific factors.
The owners of NEITHER specific factor.
