Factors of Production in Trade Models

What is the implication of having diminishing marginal returns in the specific factors model on the Production Possibility Frontier (PPF)?

In the Ricardian model, why were the Production Possibility Frontiers (PPFs) straight lines?

What must be true for workers to be indifferent between working for two sectors?

How does an increase in the relative price of cloth affect the returns to labor?

What determines consumption patterns in the autarky equilibrium model?

What does the slope of the Production Possibility Frontier (PPF) indicate in the specific factors model?

Why does the cloth wage increase proportionally smaller than the price increase when relative price of cloth increases?

What is a key factor that leads to income inequality in different sectors according to the text?

What happens to the Production Possibility Frontier (PPF) in the specific factors model due to diminishing marginal returns?

In the Specific Factors Model, which factors are specific to their industries in the short run?

What does the Ricardian Model lack, leading to a different outcome compared to models with multiple factors?

Which model is considered the short-run version of the Heckscher-Ohlin model?

What type of competition is assumed in the Specific Factors Model?

Which factor is NOT easily movable between sectors in the short run in the Specific Factors Model?

What are the two goods considered in the Specific Factors Model?

Which factor of production is specific to the manufacturing sector in the Specific Factors Model?

What do diminishing marginal returns imply about the production of goods?

What kind of products use both labor and land as factors of production in the Specific Factors Model?

What does the diminishing marginal product of labor indicate in production?

In the specific factors model, what is the effect on workers' purchasing power when there is a relative price change?

What is the impact on landowners' purchasing power when there is a relative price change in the specific factors model?

How does a relative price change affect the purchasing power of capital owners in the specific factors model?

What happens to workers' well-being in terms of purchasing power when there is a relative price increase?

How does trade affect factor incomes based on the specific factors model?

Which factor benefits from trade in the specific factors model?

What is a key difference between the specific factors model and Ricardo's theory of comparative advantage?

What would be the result if all factors were mobile according to the text?

How does trade impact owners of the factor specific to the import good in the specific factors model?

What characteristic limits full specialization in a particular good within a country or sector according to the specific factors model?