Practice questions for ECON 342 Mid-term examination Problem 1. Suppose a country has two specific factors, land and capital. Land is an input in the production of corn. Capital is used only in the production of rockets. A third factor, labor, is mobile between the two sectors. Holding all else constant, what is the effect of an increase in the amount of available capital a. on the real return on capital? b. on the real return of the mobile factor of production? c. on the output of corn and rockets