If an economy experiences an increase in its capital stock, ...

[Sufayan.ah]

If an economy experiences an increase in its capital stock, everything else constant, then at constant world prices, it will
 
  A) produce more of the labor intensive good and less of the capital intensive good.
  B) produce more of both goods.
  C) produce the same amount of both goods.
  D) produce less of the labor intensive good and more of the capital intensive good.

Question 2

The share of ________ goods in employment is ________ across the country. The share of ________ goods in employment is ________ across the country.
 
  A) nontraded; uniform; traded; variable
  B) traded; uniform; nontraded; variable
  C) durable; uniform; nondurable; variable
  D) nondurable; uniform; durable; variable
  E) nontraded; variable; traded; uniform

[ntsoane kedibone]

Answer to Question 1

D

Answer to Question 2

A