Final answer:
When Serbia becomes a member of the European Union, the likely impact on the labor market is an increase in wages, and the likely impact on the land market is an increase in land rent.
Step-by-step explanation:
When Serbia becomes a member of the European Union and its exports of textiles (labor-intensive) and imports of wheat (land-intensive) both increase, it is likely to have different impacts on the labor market and the land market.
In the labor market, the increase in exports of textiles can lead to a higher demand for labor in the textile industry, resulting in an increase in wages as firms compete for workers. On the other hand, the increase in imports of wheat may lead to a decrease in demand for labor in the agricultural sector, which could potentially lower wages.
In the land market, the increase in imports of wheat, which is land-intensive, could lead to an increase in the demand for land, resulting in higher land rent. However, the impact on land rent in Serbia will depend on the relative changes in the supply and demand for land in the country.
Therefore, the likely impact of Serbia's membership on the labor market is an increase in wages, and the likely impact on the land market is an increase in land rent. The correct answer is 1) Increase in wages in the labor market and increase in land rent in the land market.