SPECIFIC FACTORS MODEL Fill in the blank for the indicated…
SPECIFIC FACTORS MODEL Fill in the blank for the indicated problems. For numeric questions, type in the actual number (for example: 103). For the rest, type in only 1 of the following options: increase, decrease, or ambiguous. A. With Agriculture on the Y-axis and Manufacturing on the X-axis, the Y intercept of Home’s PPF will be [yint], and the x-intercept will be [xint]. B. Assume that home starts trading with the rest of the world and as a result the relative price of manufacturing to agriculture (PM/PA) falls in the home country. What happens to the following as a result of trade? Choose increase, decrease, ambiguous LA [LA] LM [LM] QA [QA] QM[QM] W/PM [WPM] W/PA [WPA] The real rental of land in terms of manufacturing [rtm] The real rental of land in terms of agriculture [rta] The real rental of capital in terms of manufacturing [rkm] The real rental of capital in terms of agriculture [rka].
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