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

question 59

Multiple Choice

In the specific factors model, a 5% decrease in the price of food accompanied by a 5% decrease in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth.

• A) an increase; an increase; an increase
• B) a decrease; a decrease; a decrease
• C) no change; no change; no change
• D) a decrease; an increase; an increase
• E) an increase; a decrease; a decrease

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Definitions:

Economic and Political Power

The ability or capacity of individuals or groups to influence or control the distribution and use of resources and decision-making processes in a society.

Sociopolitical Influence

Sociopolitical influence refers to the impact that social and political factors have on individual behavior, attitudes, and beliefs, within a specific cultural or societal context.

Gender-Related Economics

The study of how economic behaviors and decisions are influenced by gender, including the distribution of resources and labor.

Sexual Trauma

The experience of sexual violence or abuse, which can cause significant psychological distress and long-term mental health issues.