Japan produces electronics and food. Land is a specific input factor in the production of food. Electronics production requires dedicated capital input. Labour can flow freely between the two industries. A new fertilizer drastically improves the productivity of land. We can expect Group of answer choices: which one is correct a. workers experience welfare gain b. the marginal product of capital increases c. labour allocation remains constant d. the amount of capital in Japan decreases

Japan produces electronics and food. Land is a specific input factor in the production of food. Electronics production requires dedicated capital input. Labour can flow freely between the two industries. A new fertilizer drastically improves the productivity of land. We can expect

Japan produces electronics and cars. Dedicated capitals are required in these two industries, while labour can flow freely between them. Japan exports cars. The world relative price of cars increased due to higher than expected demand. In the short run, we expect thatGroup of answer choicescapitals are reallocated to the car industry.car industry output increases.marginal product of capital increases in the electronics industry.car industry pays higher nominal wage than electronics industry.

A government wishes to increase agricultural output. It gives farmers the tools to irrigate thefarmers’ fields.Which factors of production are provided by the farmers?A capital and enterpriseB enterprise and labourC labour and landD land and capita

3  Which statement about the factors of production is correct?1 pointA Capital includes man-made machines that do not keep their original value.B Enterprise is a natural factor of production that cannot be taught.C Labour is an immobile factor that does not change its skill level.D Land is only agricultural fields that cannot be improved by human effort.

Agriculture gives boost to the industrial sector’. Justify the statement withany three relevant points