Consider an economy described by a specific factors model with an Agricultural and a Manufacturing Sector. The country is open to trade. All else equal, which of the following would be consequences of a sudden accumulation of specific capital in the manufacturing sector? a. The real wage of workers measured in terms of manufactures will fall as capital replaces workers in that sector.
b. The real wage in the economy will increase, measured in terms of either good.
с. The number of workers employed in manufacturing will increase.
d. The real return to land specific to the agricultural sector will fall.

с. The number of workers employed in manufacturing will increase.

Explanation:

When there's a sudden increase of specific capital in a certain sector, in this case, the Manufacturing Sector, the consequences could be an increase in the number of workers employed, since they have more money to invest and to produce more products. If you have more capital it means you're selling more or someone is investing in your sector, which means there's more demand for your products and you need to produce more.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o