In the Specific Factors Model, a 0% Increase in the Price

question 52

Multiple Choice

In the specific factors model, a 0% 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 less then 5%; increase; decrease
• C) remain constant; decrease; decrease
• D) increase by 5%; remain unchanged; remain unchanged
• E) remain constant; increase; increase

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Definitions:

Rigidly Segregated

An environment or society where individuals are strictly separated based on certain characteristics, such as race.

CCC

The Civilian Conservation Corps, a public work relief program that operated in the United States for unemployed, unmarried men during the Great Depression, part of the New Deal.

Agricultural Adjustment Administration

A New Deal agency established in 1933 to improve agricultural prices by controlling production, often through paying farmers not to plant on part of their land.

Sharecroppers

Farmers who rent small plots of land to farm and in return, they give a portion of their crop yield to the landlord as rent.