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Business, 28.05.2021 14:20 nyandog50

Consider an economy described by a specific factors model with an Agricultural and a Manufacturing Sector. The country is open to trade. All else equal, which of the following would be consequences of a sudden accumulation of specific capital in the manufacturing sector? a. The real wage of workers measured in terms of manufactures will fall as capital replaces workers in that sector.
b. The real wage in the economy will increase, measured in terms of either good.
с. The number of workers employed in manufacturing will increase.
d. The real return to land specific to the agricultural sector will fall.

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