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Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land.
Answer: For the reason that good 2 uses land, a fall in its comparative price will result in a fall in rental rates on land, and an enhance in the return to capital.
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Question 1 What are the advantages and disadvantages of trade blocs? Question 2 Identify and explain the various parameters of regional economic integration Question 3 D
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