In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government

In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W),
Capital (K) is specific to C and Land (A) is specific to W. If the government
imposes a tariff on the imports of W then
A. Both owners of K and owners of A will benefit.
B. Owners of A will benefit.
C. Owners of K will benefit.
D. Neither owners of K nor owners of A will benefit.
(1 mark)
Explain your answer in up to 200 words and using a diagram
(4 marks)
QUESTION A.4
In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W),
Capital (K) is specific to C and Land (A) is specific to W. If the government
imposes a tariff on the imports of W then
A. Both owners of K and owners of A will benefit.
B. Owners of A will benefit.
C. Owners of K will benefit.
D. Neither owners of K nor owners of A will benefit.
(1 mark)
Explain your answer in up to 200 words and using a diagram
(4 marks)

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