In the Specific Factors Model, a 5% Increase in the Price

question 48

Multiple Choice

In the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________.

• A) increase by more then 5%; increase; remain unchanged
• B) increase by 5%; remain unchanged; remain unchanged
• C) remain constant; decrease; decrease
• D) remain constant; increase; increase
• E) increase by less then 5%; decrease; increase

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Definitions:

Control Process

The systematic procedure that ensures organizational activities and outputs meet established standards, involving setting, measuring, and correcting.