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:

Dendrites

The branched extensions of a neuron that receive messages from other neurons and transmit them toward the cell body.

Transmit

The act or process of sending signals, data, or information from one place or entity to another.

Soma

The cell body of a neuron, containing the nucleus and metabolic machinery necessary for cell maintenance and function.

Generating Information

The process of creating or producing new data or knowledge.