In the specificfactors model, an increase in the price of the manufactured good will cause:
a. a decrease in nominal wages in both the agricultural and manufacturing sectors.
b. an increase in real wages in both the agricultural and manufacturing sectors.
c. an increase in both nominal and real wages in both the agricultural and manufacturing sectors.
d. an increase in nominal wages in both the agricultural and manufacturing sectors.
Ans: d. an increase in nominal wages in both the agricultural and manufacturing sectors.
You might also like to view...
In a graph of a typical firm's AFC, ATC, and AVC curves, the
A) AVC curve lies above the ATC curve. B) ATC curve lies below the AFC curve. C) distance between the ATC curve and the AVC curve equals the AFC. D) distance between the AVC curve and the AFC curve equals the ATC. E) AVC curve crosses the MC curve at the point where the MC is at its minimum.
Single-owner proprietorships often unintentionally exaggerate their profits because they
A) forget their explicit losses. B) look at after-tax instead of pre-tax costs. C) pay their bills late and therefore incur large interest charges. D) neglect to consider the opportunity cost of the owner's labor.