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

---

Definitions:

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, leading to vision impairment.

Bottom-up Processing

An approach to information processing that starts with the sensory input and builds up to the final perception.

Sensory Adaptation

Diminished sensitivity as a consequence of constant stimulation.

Sensory Receptors

Specialized cells or neuronal structures that respond to specific types of external stimuli, such as light, sound, pressure, or chemicals, sending signals to the brain.