Question
The coup in Myanmar resulted in a cut-off of trade with many countries. For this question assume it is for all countries. Myanmar has relatively
The coup in Myanmar resulted in a cut-off of trade with many countries. For this question assume it is for all countries. Myanmar has relatively abundant less skilled labor and natural resources and relatively scarce skilled labor and capital. What do you expect to happen to the relative returns in Myanmar?
Group of answer choices- can have 1 or more answers
a) Natural resource relative prices will be unchanged. The relative wage to unskilled labor will rise, the relative wage for skilled labor will fall and the relative return to capital will rise
b) The relative price of natural resources will rise, both kinds of labor and capital will experience a relative loss in value
c) Natural resource relative prices will fall as will the relative wage to unskilled labor, the relative wage for skilled labor will rise and the relative return to capital will rise
d) Natural resource relative prices will fall, the relative wage for unskilled labor will fall, the relative return to capital will fall and the relative returns to skilled labor will rise
e) Natural resource relative prices will fall as will the relative wages of skilled and unskilled labor. The return to capital will rise
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