Consider the Specific-Factor model, Capital is specific to the automobile sector while Land is specific to the
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Consider the Specific-Factor model, Capital is specific to the automobile sector while Land is specific to the rice sector. Workers can move freely across sectors. Let us say that the relative price of rice in India is lower than in the US and these are the only two countries that trade rice and automobiles.
Draw the PPF for the US in the neoclassical framework and the trade triangle to show imports and exports.Expert Answer:
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In the SpecificFactor model we assume that there are two factors of production capital and land whic... View the full answer
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