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I require help, thank you. Determine whether each statement below is T/F, and briey explain why. Consider the following Specific Factors model. The Home country
I require help, thank you.
Determine whether each statement below is T/F, and briey explain why. Consider the following Specific Factors model. The Home country makes the M good using capital and labor, and makes the A good using land and labor. Labor is mobile, but capital and land are specific. Assume that there is no international trade, and that the prices of both the A good and M good are fixed. Now there is an inflow of immigrant workers into the Home country. The statements below ask about the changes that take place in the Home country after the immigration inflow. 1} Wage decreases. 2. Labor employment in the M industry decreases. 3) The Home country produces more A good. 4} The real wage for the M good increases, but the real wage for the A good decreasesStep by Step Solution
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