1. In the specific factors model, what is the shape of a country's production possibility frontier and why? 2. When a country's labour market is in equilibrium in the specific factors model, what would happen to the wage rate in the export-competing sector and import-competing sector? 000

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
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Problem 7SCQ: If the removal of trade banters is so beneficial to international economic growth, why would a...
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Economics

1. In the specific factors model, what is the shape of a country's production possibility frontier and
why?
2. When a country's labour market is in equilibrium in the specific factors model, what would
happen to the wage rate in the export-competing sector and import-competing sector?
On/
Transcribed Image Text:1. In the specific factors model, what is the shape of a country's production possibility frontier and why? 2. When a country's labour market is in equilibrium in the specific factors model, what would happen to the wage rate in the export-competing sector and import-competing sector? On/
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