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MMLU-Pro / 7467 / In an industrial country, capital is abundant. In a rural country, land is…

Problem

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question

In an industrial country, capital is abundant. In a rural country, land is abundant. If these two countries trade, each specializing in the good it has a comparative advan-tage in, what will happen to the prices of the resources (capital and land) in the two countries?

category

economics

options

  1. Resource prices will become unpredictable in both countries
  2. The price of capital will decrease in both countries, while the price of land will increase in both countries
  3. Resource prices will decrease in the industrial country and increase in the rural country
  4. Resource prices will increase in the industrial country and decrease in the rural country
  5. The price of land will increase in the industrial country, and the price of capital will increase in the rural country
  6. Resource prices tend to equalize in the two countries
  7. The price of land will decrease in both countries, while the price of capital will increase in both countries
  8. Resource prices will remain the same in both countries
  9. Resource prices will decrease in both countries
  10. Resource prices will increase in both countries

src

stemez-Economics

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