91Ó°ÊÓ

If a country has relatively abundant unskilled labor, with scarce land and capital, it is more likely to have a comparative advantage in which of the following industries? Check all that apply. \(\left[\mathrm{LO}_{17.1}\right]\) a. Food service. b. Textiles. c. Agriculture. d. Financial services.

Suppose Ghana discovers it has lost its comparative advantage in the production of maize. Which of the following could explain the loss of comparative advantage? Check all that apply. [LO 17.1] a. Maize-processing technology developed in Ghana spreads to other maize- producing countries. b. Decline in global demand for maize. c. Immigration of cheap labor into Ghana. d. Growth of low-skill service jobs in Ghana.

Suppose a country where capital is scarce and most of industry is labor- intensive with lowskilled labor moves from autarky to free trade. Which of the following do you expect to happen? Check all that apply. [LO 17.6\(]\) a. Owners of capital become wealthier. b. Wages for labor increase. c. Income disparity between workers and owners of capital increases.

Suppose two countries are considering a new agricultural trade agreement with each other. Country A has abundant low-skill labor and scarce land. Country B has abundant arable land but little population. In which country do land owners support a trade agreement? In which country do workers support a trade agreement?

Suppose a country has abundant capital but scarce labor. Which group would be more harmed by a trade embargo: owners of capital or laborers?