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

question 45

Multiple Choice

In the specific factors model, a 5% increase in the price of food accompanied by a 1% increase 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; a decrease; an increase
• B) an ambiguous change; an increase; a decrease
• C) an ambiguous change; an ambiguous change; an ambiguous change
• D) a decrease; an ambiguous change; an ambiguous change
• E) an ambiguous change; a decrease; an increase

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Definitions:

Male Chauvinism

An attitude of superiority and entitlement held by some men towards women, often manifesting in discrimination and bias.

Prejudice

Preconceived opinion or bias against a person or group without sufficient knowledge, rational reason, or actual experience.

Sexual Variations

Refers to the diverse range of sexual practices, preferences, and identities beyond traditional norms and expectations.

Socially Approved

Refers to behaviors or practices that are accepted and endorsed by society or a specific community as appropriate or desirable.